FTSE rises, pound falls as growth slows, Brexit headwinds rise

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Pound falls as UK growth slows and Brexit headwinds pick up

The pound is expected to weaken against the euro in 2022 as UK economic growth slows and Brexit headwinds increase, according to Bank of America. “We believe the UK is in a unique position to weather two supply shocks: the pandemic and Brexit,” said BofA forex strategist Kamal Sharma. So far, the UK has been able to use the pandemic as cover to explain supply chain issues, but an open debate about Brexit’s role in the problem will become necessary as the pandemic subsides, says -he. Meanwhile, the market is subject to aggressive pricing for rate hikes by the Bank of England, which will be “difficult to crystallize”, he says. BofA expects EUR/GBP to hit 0.89 by the end of the year from 0.8358 currently.

 
Companies News: 

Leeds group moved to 1H pre-tax loss, shares tumble

Shares of Leeds Group PLC fell on Monday after the company said it posted a pre-tax loss in the first half of financial year 2022 as its performance was hit by restrictions across Europe to curb the variant of the Omicron coronavirus.

Hurricane Power Generation Hits Views, Revenues Rise in 2021

Hurricane Energy PLC said Monday that production met expectations and revenue grew in 2021, and it expects to pay off its bond debt soon.

Yourgene Health increases advice again

Yourgene Health PLC said on Monday it expects to beat updated market revenue forecasts for the year, its third update since October.

Clean Power Hydrogen to raise £50m in AIM float

Clean Power Hydrogen PLC said on Monday it plans to raise 50 million pounds ($68.4 million) and float London-based junior AIM, with trading expected to begin early next month.

Forward Partners appoints Lloyd Smith as Chief Financial Officer

Forward Partners Group PLC announced on Monday that it has appointed Lloyd Smith as Chief Financial Officer effective March 21.

Tavistock Investments to buy Morgans for £3.7m

Tavistock Investments PLC announced on Monday that it has agreed to buy independent financial advisory group Morgan Financial Group Holdings Ltd. for 3.7 million pounds ($5.1 million).

MP Evans 2021 crop, increased production; announces a special dividend

MP Evans Group PLC said on Monday that harvest and production had increased in 2021 and it announced a special dividend.

Oxford BioMedica CEO resigns

Oxford BioMedica PLC announced Monday that chief executive John Dawson will retire from the company.

M&G appoints Barclays treasurer Kathryn McLeland as chief financial officer

M&G PLC announced on Monday that it has appointed Kathryn McLeland as the company’s chief financial officer.

Unilever sets ambition to expand into healthcare products – WSJ

Unilever PLC said it wanted to significantly expand its footprint in health, beauty and hygiene, and planned to sell off slower-growing parts of its mainstream ice cream soap brand empire. to finance major acquisitions.

Increase in net profit of VTB Bank in 2021

VTB Bank said on Monday that net profit and total assets for 2021 increased.

BlueRock Diamonds revenue grew 68% in Q4

BlueRock Diamonds PLC said on Monday its revenue rose 68% in the fourth quarter, reflecting higher diamond prices.

Unilever sets ambition to grow in healthcare products – Update

Unilever PLC said it wants to push health, beauty and hygiene products further at the expense of slower-growing food brands, outlining its biggest strategic shift in years after disclosing a $68 billion approach for the consumer healthcare business of GlaxoSmithKline PLC.

Genflow Biosciences shares rise on stock market debut

Shares of Genflow Biosciences PLC rose 31% on Monday as the company began trading on the London Stock Exchange, implying a market capitalization of 30.7 million pounds ($42 million).

 
Market Talk: 

Ashmore needs momentum to realize value

13:14 GMT – Shares of Ashmore Group tumble 1.6% after the fund manager said second-quarter assets under management fell $4.0 billion due to negative investment deals of 1 $.8 billion and net outflows of $2.2 billion. While there is still a slight shortfall in AUM relative to estimates, arguably the biggest weight in estimates comes from weaker markets this month, Panmure Gordon said. “The company’s relative performance is good, but relative performance when absolute returns are negative is not a great selling point,” Panmure analysts say. “There is a growing value argument, rarely the case for Ashmore…but, as always, some momentum is needed.”

Taylor Wimpey looks healthy after bold strategy

12:48 GMT – Taylor Wimpey’s bold strategy at the start of the pandemic – embarking on a spending spree with an eye to the future, made possible by a capital raise – is already starting to bear fruit, propelling an increasingly healthier, according to Interactive Investor. Shares of the British homebuilder remain attractively priced relative to the historical average, but have languished behind their peers on previous fundraising, the abolition of dividends and fears of a weak UK economy causing lower prices, Interactive Investor said. “While stocks have yet to recover from these simultaneous blows, investor sentiment toward the company and its prospects is unwavering, and the market consensus on the stock still stands defiantly at a strong buy,” the statement said. investment platform. The shares are up 2.8% at 158.25 pence.

Eurowag update seems to point to a strong 2022 financial year

1202 GMT – Eurowag’s update for fiscal year 2021 shows strong performance despite supply chain disruptions and pandemic uncertainties, says Jefferies. While these factors may affect the UK-listed integrated payment and mobility platform, for fiscal 2022 Jefferies expects net revenue of approximately 20% on an annualized basis and a margin of Ebitda of around 46%, driven by its individualized pricing model and better mix. within its toll business. As the performance update gave a “first proof” point, the US bank maintains its buy recommendation with a price target of 220 pence. The shares are trading up 12% at 102 pence.

High UK electricity prices benefit RWE, Uniper and Greencoat UKW

11:31 GMT – High electricity prices are the main benefit of the UK electricity market in the fourth quarter of 2021, when traders-exposed generators are likely to have benefited the most, according to RBC Capital Markets. This includes RWE, whose gas-fired plants have performed well, suggesting additional revenue from high prices, RBC said. Similarly, Uniper also recorded positive TGCC performance and also benefited from continued coal-fired power generation. In addition, Greencoat UKW saw its onshore wind generation increase by 52%, well above the UK average. On the negative side, data for SSE looks less positive, with weaker gas, hydro and offshore wind production in the fourth quarter, according to RBC.

Ashmore has a lot of value on the long-term position

11:10 GMT – Ashmore Group’s performance update for the quarter shows near-term uncertainty, which has seen its share price fall 25% in the past six months, Peel Hunt said. However, the company still has plenty of value for those looking for a long-term position, according to the UK brokerage. “Ashmore is stronger today than ever – there is still significant potential for outperformance in the years to come,” said Peel Hunt. The shares are trading down 1.8% to 284.2 pence.

Sale of GlaxoSmithKline Consumer Healthcare would reduce appetite for stocks

11:09 GMT – GlaxoSmithKline’s plan to retain but spin off its Consumer Healthcare division is widely seen as a value-crystalizing event, Jefferies says. That’s why a potential sale of the division – which comes as the company has confirmed reports of proposed acquisitions by Unilever – is likely to dampen appetite for the stock, Jefferies said. “At least initially, we expect many shareholders to fear a large acquisition and the risk of lower returns,” the investment bank said. The British pharmaceuticals major rejected Unilever’s proposals and rightly so, given that a £50bn offer reflects a modest 10% acquisition premium, Jefferies said.

Access Intelligence hard hit in Southeast Asia by Covid-19

10:59 GMT – For British information and marketing company Access Intelligence, the effect of Covid-19 has been harsh in South East Asia as corporate and public sector customers cut spending, according to finnCap. The brokerage says that while the company’s post-pandemic outlook remains strong, with planned investments expected to continue and even accelerate, it is cutting its revenue and earnings guidance for fiscal 2022 and 2023.” We look forward to continued evidence of execution in the UK and Australia/New Zealand, and evidence of recovery in customer spending in South East Asia, in which case with a healthy cash reserve throughout forecast horizon, the valuation can react and confidently look to 2023 and beyond,” he said. FinnCap lowers its price target on the stock to 210 pence from 225 pence. down 24% to 116 pence.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswire

January 17, 2022 08:32 ET (13:32 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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