FTSE 100 closes at 20-month high as the pound slips

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The FTSE 100 closed 0.6% higher on Thursday, hitting a new 20-month high, leading European stocks higher with Auto Trader Group PLC topping the list. UK investors must thank the Bank of England, last week’s decision to postpone a rate hike helping to push the pound and stocks higher, said Joshua Mahony, senior market analyst at IG Group PLC . The international makeup of the FTSE 100 provides a strong inverse correlation with the pound sterling as the value of foreign earnings increases, Mr Mahony said. “The latest UK growth data has done little to help the pound at a time of weakness, with third quarter growth falling below estimates at 1.3%,” he notes.

 
Companies News: 

FRP Advisory Says First Half Performance Has Been Strong and Revenues Expected to Increase

FRP Advisory Group PLC said on Thursday that its performance was strong in the first half of fiscal 2022, with revenues and underlying Adjusted EBITDA continuing to increase.

Burberry Shares Fall Due to Declining Tourism Flows Despite H1 Profits and Revenue Growth – Update

Shares of Burberry Group PLC fell on Thursday after the company said performance declined in China in August and the EMEA region in the first half of fiscal 2022 due to a significant drop in tourist flows.

Bank of Georgia’s third quarter pre-tax profit increased

Bank of Georgia Group PLC on Thursday announced an increase in its profit before tax for the third quarter of 2021, and said that its corporate and investment banking business had a strong quarterly performance during the period.

Tremor International’s Q3 Pre-Tax Profit Soars on Higher Revenue

Tremor International Ltd. on Thursday announced a strong increase in its profit before tax for the third quarter of the year thanks to revenue boosted by a strong performance in connected television services.

10-month performance restoration was in line with higher revenue views

Restore PLC said on Thursday that its performance in the 10 months ended October 31 was in line with expectations, as the company enjoyed a revenue increase above pre-Covid levels.

Beximco Pharmaceuticals 1Q profit before tax Rose

Beximco Pharmaceuticals Ltd. on Thursday announced an increase in its pre-tax profit for the first quarter of fiscal 2022.

Johnson Matthey’s shares tumble as profit nears lower end of consensus, seeks exit from battery materials – Update 2

Johnson Matthey PLC shares fell on Thursday after the company said annual profits would be below expectations and announced plans to sell its battery materials business because it does not expect it to generate enough. of returns.

Vatican approaches sale of London building trapped in corruption scandal

The Vatican is close to a deal with two private equity firms to sell a commercial building in London at the center of one of the main scandals of Pope Francis’ reign.

Polar Capital Holdings Appoints CFO to Board of Directors

Polar Capital Holdings PLC announced Thursday that the group’s chief financial officer, Samir Ayub, will join the board of directors on November 17.

AstraZeneca Profits Expected To Increase; Alexion, Covid Vaccine Revenue Focus – Profit Snapshot

AstraZeneca PLC is due to release its third quarter results on November 12. Here’s what you need to know:

Firering raises £ 4million in London IPO to search for lithium in Ivory Coast

Firering Strategic Minerals PLC secured a 4.0 million pounds ($ 5.4 million) capital increase for its IPO on AIM on Friday.

 
Market Talk: 

Auto Trader update on tough trading time was necessary

1332 GMT – Auto Trader 1H record provided a much needed update on its performance during a difficult trading period, Shore Capital said. The car ad publisher reported strong trading during a period in which external dynamics such as supply chain issues in the new car market and very high demand for used vehicles have been a feature, Shore said. The operational developments of the company include an increased focus on online retailing, the introduction of a new top-level advertising package, as well as a good penetration of high-end retailer packages, the group said. British investment. “We continue to view Auto Trader as a very well managed company with a strong business model and an excellent competitive position and anticipate a very attractive financial performance going forward,” said Shore.

Mediclinic’s strong actions could have been evaluated in 1H Cheer

12:17 GMT – Mediclinic International shares fall 0.6% after the private hospital operator announced higher profits and pre-tax income in the first half of the year and raised its revenue forecast for the full year. “We expect a neutral to positive reaction today,” said UBS analyst Thando Skosana. On the one hand, the increase in forecast is expected to increase consensus earnings per share by 3-5%, while comments on further reductions in Covid patient levels and the return to more normalized operations should be fine. welcomed. On the other hand, stocks have been strong since last month’s update, so some of that positive news has likely been incorporated. ”

Massive sale of long-term UK debt, IG sterling credit likely, says Mizuho

12:16 p.m. GMT – Less accommodative monetary policy in the UK is still not embedded in longer-term debt and high-grade sterling-denominated corporate bonds, creating a business opportunity to take advantage of a potential price revision, Mizuho said. “The structurally stricter monetary policy towards which the BOE is moving is still not reflected in long-term rates and in GDP-quality credit,” analysts at the Japanese bank say. They expect this repricing to come sooner or later and cause sterling spreads to spread and widen on investment grade credit. “A good way to take advantage of the sterling duration and higher credit risk premiums is to use a short SLXX [iShares Core Corp Bond UCITS Exchanged-Traded Fund GBP] vs long IGLS ETF [iShares UK Gilts 0-5yr UCITS ETF],” they say.

Auto traders results show resilience of business model

11:31 GMT – Car listing publisher Auto Trader performed better than expected in the first half of the year despite headwinds due to market supply issues, Peel Hunt said. Due to its volume-based model, there was uncertainty about its performance despite the boom in auto transactions in today’s auto market, according to the UK brokerage firm. Yet the company’s results show not only how resilient its model is, but also how the company is an important partner for dealerships, he says. “With the potential of developing new products to help dealers on the digital car buying journey, the road ahead looks good for Auto Trader,” the brokerage said. Peel Hunt is pricing the stock purchase and has a target price of 715 pence. Shares are up 11% to 687 pence.

Burberry 1H profit exceeds expectations, but 2Q sales fall short

11:31 GMT – Shares of the Burberry Group are among the biggest drops on the FTSE 100, down 5% after the luxury goods retailer reported worse-than-expected second-quarter sales. The 6% increase in like-for-like second quarter retail sales was slightly below market expectations of 9%, although adjusted operating profit of £ 196million in the 26 weeks leading up to September 25 was exceeded consensus by 8%, according to RBC Capital Markets. Citigroup called the results mixed, with slower like-for-like sales in China and lack of earnings per share momentum eclipsing better-than-expected cash flow and pre-tax earnings before interest. Citi says it expects 2021/22 Consensus Adjusted EBIT of £ 469million to remain broadly unchanged, with 1H22 profit being partially offset by increased demand uncertainty.

Burberry investor worries about Chinese customers hit the share price

11:28 GMT – There have been two pressure points for Burberry during the pandemic, China and travel, which is why its recovery has been so uneven, said Russ Mold, chief investment officer of AJ Bell. The British luxury goods company is heavily dependent on Chinese customers, especially those who purchase items in Europe as part of its tourist trips. “This explains why sales are down from pre-pandemic levels in the Europe, Middle East, India and Africa region,” Mold said. Shareholders are hopeful that these are short-term issues and that there have been more encouraging signs regarding the medium-term outlook for Burberry as the contribution of digital sales to the mix continues to strengthen, Mold adds. . Shares are down 6.3% to 1,842.50 pence.

Taylor Wimpey’s comments on inflation are heartwarming

11:19 GMT – Taylor Wimpey’s strong overall trade statement indicates she is on track to deliver 2021 results in line with her previous expectations, but comments on inflation are particularly reassuring, Goodbody said. The homebuilder also stressed that demand remains strong, cost pressures are expected to gradually improve and guidance for 2021 operating profit, including joint ventures of £ 820million, remain unchanged, according to the Irish brokerage house. “While it’s fair to say that we haven’t learned much new from this morning’s update, it’s heartwarming that house price inflation continues to ‘fully offset'” consumer price inflation and the group remains confident in achieving its medium-term objectives. “Goodbody said, retaining his buy rating. The shares are up 0.1% to 158.1 pence.

 

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

 

(END) Dow Jones Newswires

November 11, 2021 12:02 p.m. ET (5:02 p.m. GMT)

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