FTSE 100 to Open Lower as Covid-19 Worries Persist

FTSE 100 to Open Lower as Covid-19 Worries Persist

0646 GMT - The FTSE 100 is expected to open lower after Asian shares fell amid continuing worries about the Delta coronavirus variant. Spreadbetting firm IG expects the index to start the session down 34 points. Noting declines in Asian equities, Oanda analyst Jeffrey Halley says: "The overriding theme was caution with markets unable to shake off nerves about the Covid-19 Delta variant and its effects on the admittedly K-shaped global recovery [where different parts of the economy recover at different rates] after recent data disappointments from the U.S. and China." Meanwhile, data on Tuesday showed the U.K. unemployment rate unexpectedly fell to 4.7% between April and June from 4.8% previously. ([e-mail])

 
Companies News: 

BT Group Names Adam Crozier as Next Chairman, with Effect from December

BT Group PLC said Tuesday that it has appointed Adam Crozier, former chief executive of ITV PLC and Royal Mail PLC, as its next chairman, replacing Jan du Plessis.

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TP Group Says GBP45.2M Takeover Proposal From Science Group Undervalued Company

TP Group PLC said Tuesday that it rejected a proposed 45.2 million pound ($62.6 million) takeover proposal from Science Group PLC as it significantly undervalued the company.

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Remote Monitored Systems Continues Trials for Products, in Discussions With Potential Partners

Remote Monitored Systems PLC said Tuesday that its wholly owned subsidiary Pharm 2 Farm Ltd. is continuing trials for two products, and that it is in discussions with potential partners for each product.

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Electra Private Equity to Rename Itself Unbound After Hospitality Spinoff

Electra Private Equity PLC said Tuesday that it will rename itself as Unbound Group PLC after a demerger of its hospitality brands through a new company called Hostmore PLC.

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Plus500 1H Pretax Profit, Revenue Fell; Approves $12.6 Mln Buyback

Plus500 Ltd. said Tuesday that pretax profit and revenue fell for the first half and that it has approved a buyback program of up to $12.6 million.

 
Market Talk: 

Bond Yields Set to Rise as Global Supply-Demand Balance Worsens

0614 GMT - The balance of global supply-demand dynamics point to higher bond yields, JPMorgan says, expecting this balance to deteriorate this year and next. The worsening balance implies an approximately 50 basis point upward pressure on bond yields, JPM says. Regarding the effect on equities in cross-asset strategies, JPM is of the view that moderately higher yields shouldn't challenge equity valuations. "Our preference for value stocks would provide a cushion as they would likely outperform in a rising yield environment," it says. ([e-mail])

BHP May Lean on Old Playbook to Seal Woodside Deal

0013 GMT - A potential merger of Woodside and BHP's petroleum division is complicated by BHP's dual-listed structure, says RBC Capital Markets. The bank points to BHP's spinoff of its steel assets in 2002 as a playbook for how it could be overcome. A similar deal structure could involve BHP's Australian shareholders receiving one Woodside share for each 6-8 shares that they already own, while BHP's London shareholders could receive a distribution reflecting the market value of Woodside, RBC says. That would be more palatable as the merged company would have complementary assets, the potential to make savings and similar cross-ownership, it says. ([e-mail]; @dwinningWSJ)

Contact: London NewsPlus, Dow Jones Newswires; [e-mail]

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08-17-21 0304ET