The FTSE 100 closed Friday up 0.47%, clawing back gains after a difficult week overall for European markets. The index struggled this week as earnings guidance downgrades and rising long-term yields hit sentiment, but a mixed U.S. jobs report appears to have stabilized sentiment, says CMC Markets UK Chief Market Analyst Michael Hewson in a research note. The job figures have acted as a support to market sentiment, and even slightly stronger wage growth has not unduly alarmed investors, agrees Chris Beauchamp, IG Group's chief market analyst in a market comment. "A positive tone prevails across markets in the wake of payrolls this afternoon, raising hopes that the mid-week wobble around the U.S. downgrade can be contained," Beauchamp says.


COMPANIES NEWS:

WPP Cuts Growth Guidance After Profit Halves Amid US Market Slowdown

WPP cut its growth guidance for the year on Friday as it reported a fall in its pretax profit for the first half as activity in its biggest market, the U.S., was hurt by lower tech spend which hit revenue.

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Capita Swung to Pretax Loss on Business Exits, Goodwill Impairment, Cyberattack

Capita said it swung to a first-half pretax loss due to business exits, a goodwill impairment and costs related to a cyberattack, and that the board's expectations for the year were unchanged.

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De La Rue Appoints Dean Moore as Interim Chief Financial Officer

De La Rue said has appointed Dean Moore as interim chief financial officer, replacing Charles Andrews who has held the role since April.

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Morgan Advanced Materials Pretax Profit Fell on Higher Costs

Morgan Advanced Materials said Friday that first-half pretax profit fell after booking higher costs, and that its financial performance reflected the short-term effect of a cyber incident in January.

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Parity Group Sees 1H Revenue 10% Lower Than 2H as Market Conditions Bite

Parity Group said that it expects revenue for the first half year to be 10% less than that for the second half of last year given the more challenging market conditions over recent months.

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H.C. Slingsby Pretax Profit Fell on Higher Costs; Dividend Suspended

H.C. Slingsby said first-half pretax profit fell after booking higher costs, and that it wasn't declaring a dividend due to the uncertain outlook.

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Alien Metals Chairman Guy Robertson to Become Finance Director

Alien Metals has appointed Alwyn Vorster as nonexecutive chairman, replacing Guy Robertson, who is moving to be finance director.

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Telecom Plus Sees Increase in Adjusted Pretax Profit

Telecom Plus said it expects to deliver an increase in adjusted pretax profit for its current fiscal year on the back of double-digit growth in customer numbers.

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Helium One Appoints Graham Jacobs Finance Director After Russel Swarts Steps Down

Helium One Group said Finance Director Russel Swarts is stepping down and that it has appointed Graham Jacobs as financial and commercial director with immediate effect.

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Home REIT Agrees on Sale of 40 Properties for GBP4.8 Mln

Home REIT said it has agreed on the sale of 40 properties for 4.8 million pounds ($6.1 million) and that the proceeds will be used to reduce borrowings and as working capital.

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Tan Delta Systems to List on London AIM

Tan Delta Systems plans to list on the London Stock Exchange's Alternative Investment Market, it said Friday.

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Royal London Operating Profit Rose on Workplace Pensions Growth, New Business

Royal London said operating profit rose for the first half driven by growth in workplace pensions, new business contributions and higher risk-free rates, which increased expected returns on its assets.

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Big Technologies Flags Start of Legal Proceedings Against It

Big Technologies said Friday that legal proceedings have been launched against it with the High Court of Justice England and Wales in relation to an acquisition.

MARKET TALK:

WPP's Profit Warning Another Sign of Sector Slowdown

0850 GMT - WPP's profit warning is telling as advertising agencies are a good proxy for the state of the economy, AJ Bell says in a market comment after the London-based firm lowered its revenue growth guidance for the year. U.S. technology companies have slashed costs as they right-size operations following postpandemic over-hiring. "Nevertheless, tech is a highly competitive market and to stand out from the crowd tech firms will have to keep dishing out the dollars on promotional activity, so WPP will no doubt be banking on the sector downturn being short-lived," analyst Dan Coatsworth writes. Peers have disappointed with their latest updates, suggesting the advertising and marketing industry is going through a cyclical downturn, he adds. Shares fall 7.1% at 787 pence. (elena.vardon@wsj.com)

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WPP Share-Price Weakness Seen Continuing

0741 GMT - WPP doesn't have a clear catalyst for recent weakness in its share price to reverse in the short term, Shore Capital says in a note after the London-based advertising group's first-half results and growth guidance cut sent shares to the bottom of the FTSE 100 index. "We will revise our financial forecast to reflect this weaker-than-expected performance and reduced revenue guidance driven by tech sector exposure, although WPP's share price has arguably anticipated this weakness already--giving back previous gains," analyst Roddy Davidson writes. Shore has a buy rating on the stock. Shares slump 7.5% at 783.6 pence, their lowest price in nine months. (elena.vardon@wsj.com)


Contact: London NewsPlus, paul.larkins@wsj.com


(END) Dow Jones Newswires

08-04-23 1208ET