FTSE 100 Index Down 0.4% at Close, Dragged by -2-

NWF Group said Tuesday that Group Finance Director Chris Belsham has been appointed chief executive designate and will succeed current CEO Richard Whiting who intends to retire in March.

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Alteration Earth Signs Preliminary Deal to Buy Verdant Earth Technologies for GBP125M

Alteration Earth said Tuesday that it has agreed on non-binding preliminary terms to buy Verdant Earth Technologies for 125 million pounds ($160.4 million).

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Zytronic Appoints Christopher Potts as Nonexecutive Chair

Zytronic said Tuesday that it has appointed Christopher Potts as nonexecutive chair with immediate effect.

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Oncimmune's Acting CEO Ron Kirschner Steps Down, Takes COO Role; Gouldstone Starts as CEO

Oncimmune Holdings said Tuesday that acting Chief Executive Officer Ron Kirschner has stepped down from the board and taken the role of chief operating officer after Martin Gouldstone started as the new CEO.

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XP Power Names Matt Webb New CFO

XP Power on Tuesday appointed Matt Webb as its chief financial officer effective on Sept. 4.

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Beacon Rise Says Shares Suspended on FY 2023 Accounts Delay

Beacon Rise Holdings said Tuesday that it has asked for its listing to be suspended from trading pending the finalization of its accounts for the year ended March 31.

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MARKET TALK:

BP's Commitment to Shareholder Returns Has Likely Widened Its Debt

1001 GMT - BP failed to clear the already low bars in Tuesday's 2Q print, while its commitment to shareholder returns seems to have increased net debt, CMC Markets analyst Michael Hewson writes in a market comment. To offset weak financial results, the oil-and-gas major launched a bigger-than-expected buyback of $1.5 billion, while raising its dividend by 10% to 7.27 cents. "This appears to have come about as a result of increasing the company's net debt by $2 billion to $23.66 billion, pushing its net gearing up to 21.7%," he says. Shares are up 1.4% at 489.75 pence. ([e-mail])

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Diageo's FY 2023 Sales Lag on Post-Pandemic Normalization

0951 GMT - Diageo reported a mixed FY 2023 performance as the post-pandemic normalization in the spirits sector is taking longer than in other categories, Quilter Cheviot head of equity research Chris Beckett says in a note. The alcoholic drinks company's sales in China were already expected to be hurt by the lockdowns, Beckett says. However, North America sales surprisingly fell despite consumer spending holding up and the economy proving to be robust, he notes. Overall, sales are still growing but due to price increases, as volumes are down, Beckett says. "Premium brands are doing well but some subsidiary brands are struggling and Diageo is being a little vague in when they expect improvement to happen," he adds. ([e-mail])

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HSBC's 2Q Leaves Little for Detractors to Focus on

0951 GMT - HSBC Holdings' second-quarter results were a tour de force achieved through growth from higher income, lower costs and the reshaping of the business, Interactive Investor says in a market comment. The bank announced a $2 billion share buyback and raised its interest income and return on tangible equity guidance. "The announcement of a further share buyback and upgrades to its guidance leave little for detractors to focus on," head of markets Richard Hunter writes. Prospects are many and varied for the London-based, Asia-focused lender, and this has partly driven its share price outperformance recently, he adds. Shares in London rise 1% at 653 pence, and are up 27% year to date. ([e-mail])

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BP Gains as 'Meaningful' Dividend Rise Cheers Investors

0935 GMT - BP shares rise 1% after the oil major's second-quarter results missed expectations, though it increased its dividend. The numbers fell significantly short of consensus forecasts due largely to downbeat trading in its refining business, investment manager Quilter Cheviot says. "However, it wasn't all bad news for investors," Quilter equity research analyst Jamie Maddock writes. "Despite underwhelming earnings, BP's approach to shareholder distributions came as a pleasant surprise. It maintained its share-buyback program at $1.5 billion for the third quarter, at the upper limit of what analysts were expecting. Moreover, it raised its dividend by 10% to 7.27 cents per share, a meaningful upward adjustment that few predicted. This strategy indicates a robust commitment to returning capital to shareholders."([e-mail])

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Weir Gains After 1H Tops Hopes, Upgrades Guidance

0935 GMT - Weir Group shares top the FTSE 100 risers, up 5% to 1922 pence after the Scottish mining engineer upgraded its full-year revenue and profit guidance. The Glasgow-based company's first-half results were strong, with 1H pretax earnings before interest and amortization 8% ahead of market expectations as mining-industry demand remained supportive, RBC Capital Markets says. "The underlying performance of Weir Minerals highlights not just a top-tier mining-equipment play, but also comparable traits to much higher-rated 'quality' names in our wider coverage," RBC analyst Mark Fielding says in a note, reiterating RBC's outperform rating and 2400p price target on the stock. ([e-mail])

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Diageo's Accountancy Move to Dollars Shows Focus on US Market

0926 GMT - Diageo's accountancy switch to U.S. dollars from pound sterling in fiscal 2024 shows that the group sees the U.S. as its most important and biggest market, Quilter Cheviot's head of equity research Chris Beckett says. The alcoholic-drinks company's change will mainly hit U.K. investors, given that dividend payments will be affected by foreign-exchange moves, Beckett highlights. "Further appreciation of sterling would have a significant impact," Beckett adds. Shares are up 0.5% to 3,413 pence. ([e-mail])

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BP's Dividend Lift Suggests Cautiously-Optimistic Outlook

0925 GMT - BP's wide miss to expectations was largely due to disappointing performance in its Customers & Products business, lower refined-product prices and weak oil trading, Quilter Cheviot equity research analyst Jamie Maddock says in a market comment. However, it wasn't all bad news for investors, as the British energy giant launched a share buyback program at the upper-end of what analysts were expecting and raised its dividend by 10%. "While the results of this latest report have been less than stellar, the commitment to shareholders and maintained spending could suggest an anticipation of more favorable market conditions in the future," Maddock says. Shares are up 1.3% at 489.15 pence. ([e-mail])

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Fresnillo's Cost Pressures Peaked at 1H, Citi Says

0905 GMT - Fresnillo's cost pressures may have peaked and there are positive drivers in place for cost optimization, Citi says in a note after the Mexican precious-metals miner posted first-half earnings below expectations on a one-off cost item. A 17% on-year cost increase is optically high, but it reflects the sequential easing of cost pressures given the 23% on-year rise in the previous six-month period, the U.S. bank's analysts note. "We believe that the company has several bottom up drivers, which should result in continued easing of cost pressures in 2H 2023," they write, seeing a more favorable cost profile ahead as the group guided to manage costs to contain the impact from currency movements in the second half. Shares fall 6.7% at 576.6 pence. ([e-mail])

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BP CEO Says Offshore-Wind Spending Must Fit Company's Own Power Needs

0900 GMT - BP CEO Bernard Looney says the company's recent successful bid for offshore-wind rights in Germany was very attractive for BP because it needs more green power for its own businesses--including its European refineries, electric-vehicle charging network, biofuels, planned hydrogen production and trading. BP's Gulf of Mexico needs are different despite its big offshore oil-and-gas footprint there, Looney says Tuesday in an interview, suggesting BP won't participate in the first U.S. offshore-wind auction in the Gulf of Mexico. "We don't have the same in the Gulf of Mexico. We're interested in developing positions where we can integrate it into our own demand." ([e-mail])

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UK October 2025 Gilt Auction Could See Weaker Demand Ahead of BOE Decision

0845 GMT - The U.K. Debt Management Office's planned sale of GBP4 billion in the 3.5% October 2025 gilt at 0900 GMT is expected to attract softer demand than previous auctions due to high uncertainty ahead of the Bank of England rate decision on Thursday, say RBC Capital Markets analysts in a note. "The uncertainty will likely keep investors from taking on risk ahead of the auction," they say. ([e-mail])

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BP's Weak 2Q Oil Trading Overshadows Dividend Boost

0741 GMT - BP's commodity trading business seems to have had a markedly tougher 2Q, with earnings significantly lower than market expectations, Citi analysts write in a research note. However, the unexpected 10% on-quarter hike to the dividend and indications of 3Q buybacks at the top-end of consensus expectations suggest an improving financial performance, the analysts say. Investors could be inclined to accept the odd quarter where the strategy doesn't execute well, given the energy giant's trading for the most part has been a positive source of income, they say. "And the saving grace, in our view, is a valuation... that sits now at almost a 15% discount to key European peer Shell. For investors who want large-cap exposure to energy, BP remains our preferred equity." Shares are up 1.5% at 489.80 pence. ([e-mail])

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Fresnillo Shares Sink to More Than Three-Year Low After 1H Miss

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08-01-23 1217ET