FTSE 100 Falls as U.S. Rate Rise Bets Dent Sentiment

FTSE 100 Falls as US Rate Rise Bets Dent Sentiment

0842 GMT - The FTSE 100 falls 0.6% to 7966 points as the prospect of further U.S. interest rate rises weighs on market sentiment. On Thursday, data showed U.S. producer prices rose more than forecast in January while Fed officials Loretta Mester and James Bullard said the Fed should have raised interest rates more aggressively early this month, fuelling expectations for further tightening. Natwest shares slip 8.3% even after the lender reported a 33% jump in annual profit. "A slightly perplexing reaction has hit the shares in early trade, perhaps in light of some profit taking after the share price spike of 24% over the last three months, while a weaker market generally is also clouding sentiment," Interactive Investor analyst Richard Hunter writes. ([e-mail])

 
Companies News: 

Smith & Nephew Appoints Rupert Soames Chair Designate; Roberto Quarta to Retire

Smith & Nephew PLC said Friday that Rupert Soames has been appointed chairman effective Sept. 15, replacing Roberto Quarta, who is retiring this year.

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Segro Swung to 2022 Pretax Loss on Valuations Although Adjusted Profit Rose

Segro PLC said Friday that it swung to a pretax loss in 2022 on an unrealized valuation deficit in the portfolio, though adjusted pretax profit and revenue rose.

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NatWest Launches GBP800 Mln Buyback After 4Q Pretax Profit Beat Views

NatWest Group PLC on Friday posted a rise in pretax profit for the fourth quarter of 2022, which came in slightly ahead of market views, and said it intends to start a share buyback program of up to 800 million pounds ($959 million) in the first half of 2023.

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Pod Point 2022 Pretax Loss Widened on Higher Costs; Revenue Rose

Pod Point Group Holdings PLC said Friday that revenue for 2022 rose but that its pretax loss widened as costs increased.

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Purplebricks Group Hangs Up 'For Sale' Sign; Cuts FY 2023 Guidance

Purplebricks Group PLC on Friday launched a strategic review of the business which could lead to a sale of the company or some or all of its business and assets.

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Kingspan Group Warns of Tough 2Q Comparative After 2022 Pretax Profit, Revenue Rose

Kingspan Group PLC said Friday that the second quarter of 2023 has a tough comparative as it reported a rise in 2022 pretax profit and revenue as trading profit reached record levels.

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EnQuest Sees Lower Production, Higher Costs in 2023

EnQuest PLC on Friday said it expects its 2023 production in a range lower than its 2022 average with higher operating and cash capital expenditures.

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Rambler Metals' Pauses Mine Operations Pending Delivery of Supplies

Rambler Metals & Mining PLC said Friday that while it continues discussions around its financial restructuring, it has decided to pause operations, pending the delivery of key supplies to its Ming copper mine in Canada.

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EnSilica 1H Pretax Loss Narrowed, Revenue Rose; Secures EUR5 Mln Contract

EnSilica PLC said Friday that its first half pretax loss narrowed and revenue rose, and it secured a 5 million euro ($5.3 million) contract.

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SolGold Says Completion of Cornerstone Deal Delayed

SolGold PLC said Friday that it expects the Cornerstone Capital Resources Inc. transaction to close during the week starting Feb. 27 after experiencing delays in its completion.

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Atlantic Lithium in Talks With Potential Investor

Atlantic Lithium Ltd. said Friday that it is in talks with Minerals Income Investment Fund of Ghana over a potential $30 million investment in the company.

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Harland & Wolff Finalizes Saipem Contract Payment, To Cut Methil Workforce

Harland & Wolff Group Holdings PLC said it has concluded negotiations around its amended contract with Saipem Ltd. and that it intends to reduce staff at its Methil facility.

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HealthBeacon Says 1H 2022 Challenges Continue to Subside; Backs Guidance

HealthBeacon PLC said Friday that availability and cost pressures experienced in the first half of 2022 have continued to subside, and backed its revenue guidance.

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Tasty Names New CFO

Tasty PLC said Friday that Chief Financial Officer Mayuri Vachhani will step down and leave the company at the end of March to pursue other opportunities, and named Ian Davies her replacement.

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Zaim Credit Systems to Ask Shareholders to Remove Director, Change Name

Zaim Credit Systems PLC said Friday that it will ask shareholders at a general meeting to vote on resolutions to remove Vladimir Golovko from the board with immediate effect, and to change the company name to Adalan Ventures PLC.

 
Market Talk: 

UK Retail Sales Likely to Decrease Further Despite January's Rebound

0746 GMT - U.K. retail sales are set for a downward trend despite the 0.5% on-month rise recorded in January, Pantheon Macroeconomics' chief U.K. economist Samuel Tombs says in a note. The rebound is likely to have been fueled by temporary factors such as better weather or the sharp fall in fuel prices, he says. British consumers will see a rise in energy bills when the government pulls back support in April, while the increase in mortgage rates will also weigh on disposable incomes, Tombs says. Moreover, gradual job losses and heightened household saving also will weigh on retail sales, he says. "January's partial recovery in retail sales should not distract from the dismal near-term outlook," Tombs says. ([e-mail])

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Segro Delivers Solid 2022 Results With Good Growth Prospects

0818 GMT - Segro's underlying results were slightly above RBC Capital Market's forecasts, and at first glance its growth outlook appears positive. The logistics and warehouse developer's management appear confident for the future and the company's ability to continue to deliver earnings per share growth, in-line with our expectations, RBC analysts say in a research note. "We believe that the actions that management have taken over the last decade position Segro's business well to benefit from any opportunities that often result from more challenging macro conditions," the Canadian bank says. RBC retains its outperform rating and 925 pence price target. Shares are down 1.3% at 825.0 pence. ([e-mail])

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Sterling Falls After BOE's Pill Signals Slowdown in Rate Rises

0823 GMT - Sterling falls after Bank of England chief economist Huw Pill suggested the central bank could slow the pace of interest rate rises. Speaking at the Warwick Think Tank on Thursday, Pill said there's a risk of excessive monetary policy tightening if the pace of rate rises over the past few months is maintained. His remarks contrast with comments from U.S. Federal Reserve officials Loretta Mester and James Bullard on Thursday, who said the Fed should have raised rates more than it did at its last meeting and warned of further rate rises to tame inflation. GBP/USD falls to a six-week low of 1.1915 and EUR/GBP rises to a one-and-a-half-week high of 0.8931, according to FactSet. ([e-mail])

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Segro Starts New Year in Good Shape After Strong 2022 Results

0828 GMT - Segro posted strong 2022 results, confirming continued operating progress despite challenges over the year and demonstrating further growth in the rental income stream, Shore Capital says. The logistics and warehouse developer looks to be starting the new year in good shape, despite 2022 being something of a rollercoaster year for both the U.K. economy and the real-estate sector at large, Shore analyst Andrew Saunders says in a market comment. "With a continued imbalance between the supply and demand of quality sites for warehousing, logistics and data centers supported by ongoing development we see Segro capable of sustaining premium earnings growth," the investment group says. Shore reiterates its buy rating on the stock. ([e-mail])

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UK Retail Sales Outlook Should Improve Over 2023

0835 GMT - Retail sales--and more broadly consumer spending--in the U.K. are set to be weak for at least a couple more months, but the outlook should begin to turn brighter afterward, ING's developed markets economist James Smith says in a note. Energy bills will continue to be high, but the lack of a further increase should help limit the fallout in consumer spending, he says. Moreover, over recent months British consumers have continued to build savings more quickly than they did before the pandemic, meaning there is potential to dip into savings to spend more, Smith says. On the negative side, a price correction in the housing market is clearly underway and more aggressive price declines would have a knock-on effect on spending, he says. ([e-mail])

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Segro Shows 2022 NAV Weakness But Operations Are Strong

0837 GMT - Segro's 2022 net asset value declined, driven by a sharp increase in the rate environment in the second half, though early signs of liquidity are returning, Citi says in a note. The logistics and warehouse developer's operations remain strong and, while some further declines are expected, industrial logistics assets should outperform through the rest of the downturn, Citi analysts say. "Real estate as an asset class is difficult to buy currently," the U.S. bank says. "However, we expect assets with significant reversion yet to be captured, long-term structural tenant demand drivers, development and change of use opportunity and relatively strong balance sheets should provide better risk adjusted returns." Citi remains neutral on the stock and retains its 871 pence price target. Shares are down 0.3% at 833.8 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

02-17-23 0358ET