FTSE earnings, oversold of books due to external factors, revaluation of rate bets

Oversold pound due to external factors, UK rate bets revalued

The pound has fallen deeply into oversold territory due to external factors and the market’s lowering of expectations of rising UK interest rates, according to ING. Net short positions in pounds sterling, which anticipate a weakening of the currency, reached their highest level since October 2019 in the week to November 30, according to the Commodity Futures Trading Commission. The rise in shorts was “first and foremost” due to a stronger dollar, but also reflects risk aversion and some reassessment of UK rate hike expectations after the Bank of England held down rates in November and the Omicron coronavirus variant emerged, said Francesco Pesole, ING forex strategist. . Another potential factor is post-Brexit trade tension, although it is a less important factor, he says.

 
Companies News: 

Fusion Antibodies 1H Pretax Extended Loss, Pink Income

Fusion Antibodies PLC said on Monday that its pre-tax loss widened for the first half of fiscal 2022 despite the increase in revenue, and it expects its annual revenue to meet expectations.

Cellular Goods appoints new CEO

Cellular Goods PLC announced on Monday that it has appointed Anna Chokina as the new CEO.

Thungela sees 2021 export coal production on plan

Thungela Resources Ltd. said on Monday it expects salable export production of 14.9 million metric tonnes of coal in 2021, according to the latest forecast.

Hardide’s pre-tax loss for fiscal 2021 widened; Sees improved performance in fiscal 2022

Hardide PLC on Monday announced an expanded pre-tax loss for fiscal 2021 on lower income, but said it expects performance to improve for next fiscal year as demand recovers .

Hammerson to buy back around £ 2.5million of shares

Hammerson PLC said on Monday it would launch a share buyback program, repurchasing shares worth up to around £ 2.5million ($ 3.3million).

Apax Global Alpha Funds sells stakes in Unilabs

Apax Global Alpha Ltd. said on Monday that two funds he advises have agreed to sell their stakes in Unilabs to AP Moller Holding, with the transaction expected to close in the first quarter of 2022.

3i Infrastructure invests £ 191million in SRL traffic systems for majority stake

3i Infrastructure PLC said on Monday it has invested £ 191million ($ 252.8million) for a 92% stake in SRL Traffic Systems, a traffic management rental company in the UK.

AG Barr acquires 60% of MOMA Foods, expects full control within three years

AG Barr PLC announced Monday that it has acquired a 60% stake in MOMA Foods Ltd. and plans to acquire full ownership of the business over the next three years.

Windward shares rise on London debut

The shares of Windward Ltd. rose on Monday as the company began trading on AIM.

Brandshield Achieves $ 5.0 Million Recurring Annual Revenue

BrandShield Systems PLC said Monday it exceeded $ 5.0 million in annual recurring revenue, its key performance indicator.

K-Cup Optical Equipment Orders From New Spectra Systems Customers Exceed Expectations

Spectra Systems Corp. announced Monday that a new customer has placed three orders totaling $ 394,000 for K-cup optical materials since September.

Norman Broadbent raises 75,347 GBP from a major shareholder

Norman Broadbent PLC said Monday it raised 75,347 pounds ($ 99,729) after issuing shares to shareholder Downing LLP.

D4t4 Solutions launches a share buyback program of up to 200,000 ordinary shares

D4t4 Solutions PLC announced Monday that it is launching a share buyback program of up to 200,000 common shares, and that it will hold all common shares purchased in treasury to meet its future obligations.

 
Market Talk: 

Recovery from Victrex can take time, dragging on stocks

12:10 GMT – Victrex could take time to progress despite an optimistic second half, according to Citigroup. The plastics group’s 2H results exceeded expectations, helped by a modest improvement in higher margin medical sales, according to the investment bank. “By 2022, management expects volume growth, offset by impacts on raw material and energy costs as well as headwinds on foreign exchange,” Citi analysts say. “VCT is coming out of the trough but the process should take time, limiting the upside in stocks, in our opinion.”

Deliveroo shares fall ahead of expected EU Gig-Economy workers’ rights proposal

12:05 GMT – Deliveroo faces potentially large gross profit due to the European Commission’s impending proposal for labor rights for workers in the concert economy, Citi said. The proposal – expected on Wednesday – could enter into force within the next two years, with individual countries left to interpret it on their own, as the EU’s executive body cannot mandate labor laws, notes Citi. The US bank estimates that Deliveroo’s gross profit will be reduced by 12% to 18% if European workers in the odd-job economy are to be treated as employees rather than contractors. Deliveroo shares are down 8.6% to 220.6 pence. The shares of Just Eat Takeaway also fell 5.5% to 48.26 euros. Delivery Hero is trading down 5.2% to 97.10 euros.

3i Infrastructure made a good choice with SRL Traffic Investment

11:49 GMT – 3i Infrastructure’s £ 191million investment for a 92% stake in SRL Traffic Systems shows its ability to move in and out of assets at the right time, leading to significant value creation above targets of the fund, according to RBC Capital Markets. The infrastructure investment firm chose a solid solution for its portfolio, with SRL being well positioned to benefit from rising infrastructure spending in the UK, according to the Canadian bank. “We anticipate that the flexibility provided by SRL will be a strong feature for additional customer demand, as owning increasingly complex traffic management systems is unlikely to be cost effective,” RBC said, maintaining its note. outperformance on the 3i Infrastructure share and its price target of 360 pence. . The shares are stable at 343 pence.

The acquisition of Quantile on the London Stock Exchange should boost its profits

11:43 GMT – The London Stock Exchange Group’s acquisition of Quantile for £ 274million for its post-trade division is expected to boost profits, although there is no indication of the asset’s profitability at this time. stage, according to RBC Capital Markets. The firm’s strong cash generation and financial information generation and its ability to supplement its growth through acquisitions reinforce the transaction’s medium-term attractiveness, although acquisitions in the data and analytics arena had to be a priority, according to RBC. “We see the larger group as transformed, with better quality income streams and increased exposure to secular growth themes,” the Canadian bank said. RBC maintains an outperformance rating on the stock, with a target price of 10,300 pence. Shares are up 0.9% to 6,584 pence.

Persimmon Homes faces demand risks from rising interest rates

1129 GMT – Persimmon could face pressure as potentially higher UK interest rates weigh on first-time homebuyers’ demand, according to Barclays. The bank downgrades its rating on the homebuilder’s shares from underweight to overweight, although it raises Crest Nicholson to equally overweight, and Berkeley Group to equally underweight after weak stock prices. ‘action. “Following recent house price inflation, we expect affordability to come under further pressure in 2022 as interest rates and the cost of living rise,” Barclays analysts say. “We see particular demand risks for first-time buyers, where rising rates have a more pronounced impact on mortgage costs. Our analysis shows persimmon is the most exposed.”

Shell dividend offers protection against inflation

10:30 GMT – Shell’s forecast dividend yield of 4.4% for 2022 will help protect investor cash from the ravages of inflation, and the energy major could supplement with new cash returns via buybacks shares, said AJ Bell’s Russ Mold. The share price could be volatile as oil and gas prices rise, but they look relatively well supported unless a new variant of the coronavirus causes a further slump in economic activity, says- he. “This one won’t win any friends among investors who carry out strict ethical, social and governance screening tests, but oil major Shell may appeal to income seekers for whom profit is just as important as principle,” he said. said Mold.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]

(END) Dow Jones Newswires

December 06, 2021 08:10 ET (13:10 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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