FTSE 100 Falls as Industrial Stocks Drop; Oil Gains

FTSE 100 Falls as Industrial Stocks Drop; Oil Gains

0840 GMT – The FTSE 100 Index drops 1.2%, or 87 points to 7193 as losses for industrial stocks outweigh gains for oil and mining shares. Packaging groups Smurfit Kappa, DS Smith and Mondi are among the biggest losers, alongside the likes of chemical companies Croda International and Johnson Matthey, steam-systems maker Spirax-Sarco Engineering and industrial-turnaround specialist Melrose Industries. Still, Harbour Energy, BP and Shell are among a handful of risers as Russia's decision to suspend gas supplies to Europe through the Nord Stream 1 pipeline boosts Brent crude by 2.7% to $95.50 a barrel. Miners Glencore, BHP, Rio Tinto, Antofagasta and Anglo American also advance as precious and base-metal prices mostly increase. (philip.waller@wsj.com)

 
Companies News: 

Ondo InsurTech Appoints Kevin Withington as CFO

Ondo InsurTech PLC said Monday that it has appointed Kevin Withington as chief financial officer.

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Close Brothers' Winterflood Business CEO to Retire, Successor Named

Close Brothers Group PLC said Monday that its Winterflood Securities business's Chief Executive Officer Philip Yarrow will retire from the role on Sept. 20, and that it has named his replacement.

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Carclo Shares Rise on Financing Agreement to Support Growth

Carclo PLC shares rose on Monday after the company said it has completed a funding agreement to support is growth strategy.

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Clean Power Hydrogen Appoints James Hobson as Chief Financial Officer

Clean Power Hydrogen PLC said Monday that it has appointed James Hobson as chief financial officer and executive director, with his expected start date set for Dec. 5.

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Journeo 1H Pretax Profit Flat on Higher Costs; Enters 2H in Strong Position

Journeo PLC said Monday that pretax profit was almost unchanged for the first half after it booked higher costs, and that it has entered the second half in a strong position.

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Alpha FX 1H Pretax Profit Rose; Backs 2022 Views

Alpha FX Group PLC said Monday that pretax profit for the first half of 2022 rose, backed on a robust performance on its foreign exchange risk management division, and raised its dividend payout.

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Prospex Energy Raises GBP500,000 via Loan Notes to Fund Selva Field in Italy

Prospex Energy PLC said Monday that it has raised 500,000 pounds ($575,600) via the issue of loan notes and will use the money toward its share of the development costs at the Selva gas discovery in Italy.

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R&Q Insurance Holdings 1H Pretax Loss Widened; Backs FY 2024 Views

R&Q Insurance Holdings Ltd. said Monday that pretax loss for the first half of 2022 widened after the company booked higher costs, and cut its dividend payout.

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Belvoir 1H Pretax Profit Slipped on Higher Costs; Revenue Rose

Belvoir Group PLC said Monday that its first-half pretax profit fell on increased administrative costs, though revenue rose.

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Power Metal Resources Raises GBP800,000 to Fund Projects

Power Metal Resources PLC said Monday that it has raised 800,000 pounds ($920,960) via a share placing and will use the money toward a number of projects and for general working capital purposes.

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Vistry Agrees to Merge With Countryside Partnerships in GBP1.25 Bln Takeover

Vistry Group PLC said Monday that it has agreed the terms of a merger with Countryside Partnerships PLC, buying the company in a cash and share deal that values Countryside at around 1.25 billion pounds ($1.44 billion).

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Dechra FY 2022 Pretax Profit Rose But Missed Views After Booking Higher Costs

Dechra Pharmaceuticals PLC said Monday that pretax profit for fiscal 2022 rose, but was below markets expectations due to higher expenses.

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Aston Martin Lagonda Global Conducts GBP575.8 Mln Rights Issue

Aston Martin Lagonda Global Holdings PLC said Monday that it is conducting a rights issue worth around 575.8 million pounds ($662.9 million), with the proceeds to be used to pay down debt and support future growth.

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Ashtead Technology Holdings plc Acquisition of WeSubsea

TIDMAT.

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ATOME Energy PLC Acquisition of 75 acre site for Villeta facility

TIDMATOM

 
Market Talk: 

Vistry's Countryside Deal Looks Bold, But May Pay Off

0912 GMT – Countryside Partnerships gains 5% following news that Vistry Group plans a GBP1.25 billion takeover of the U.K. house-builder. The deal is bold given the cost-of-living crisis, signs of a weakening housing market and rising interest rates, AJ Bell says. Still, the two businesses seem a decent fit, given they are both involved in affordable-housing partnerships with local authorities and housing associations. “Vistry's–or Bovis Homes as it used to be called–acquisition of Galliford Try's housing and regeneration arm also looked ill-timed when it was announced just before the pandemic,” AJ Bell Investment Director Russ Mould writes. “That deal looks rather better in hindsight and perhaps Vistry's latest deal will appear similarly astute a few years down the line.” (philip.waller@wsj.com)

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Grain Market Could Remain Tight Going into 2023

0854 GMT – The grain market could still see significant tightness in 2023, with hotter weather driving inventories down, according to UBS analysts. Full-year summer temperatures for 2022 are 3.6% above their ten-year average, something which has heavily affected corn production in particular. The higher temperatures are likely to add pressure to importers like China given higher temperatures affected its own output recently, Andrew Stott says in a note. The significant increase in summer temperatures could impact on yields and ultimately accelerate the already established trend of declining inventories across the grain market globally, he adds. Global grain inventories are expected to continue trending lower to 777.50 million metric tons in 2022-23 according to the USDA from 801.11 million tons in 2020-21. (yusuf.khan@wsj.com)

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Gateley Investors Likely to Focus on FY 2023 Clues

0851 GMT – Gateley is set to report its FY 2022 results on Sept. 13 and investor debate is likely to be focused on any clues about performance in the new fiscal year given the company is vulnerable to worsening economic headwinds, Shore Capital analyst Jamie Murray says in a research note. As the legal-and-professional services provider already gave a positive update for FY 2022, investors will turn their attention toward the impact of inflation, especially wage inflation, talent acquisition, services demand and other factors that could impact on margins, Murray says. Investors will also look for news about the recent acquisitions of Adamson Jones and Smithers Purslow, the analyst says. (michael.susin@wsj.com)

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Sterling Seen Staying Weak if Truss Becomes UK PM

0844 GMT – Sterling may struggle to recover against the dollar even if Liz Truss is named U.K. prime minister and this leads to increased fiscal stimulus and tighter monetary policy, ING says. “Normally, loose fiscal and tight monetary policy would be good for a currency,” ING analyst Chris Turner says in a note. “But given the negative growth environment–sterling is a procyclical currency–it is hard to see the pound turn around against the dollar,” he says. The U.K. bond market is also starting to “prove uneasy” with the fiscal outlook, potentially inserting a sovereign risk premium into sterling, Turner says. GBP/USD is flat at 1.1487, having earlier reached its lowest level since March 2020 at 1.1443, according to FactSet. (renae.dyer@wsj.com)

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European Natural Gas Prices Surge After Nord Stream Closure

0734 GMT – European natural gas prices surge after Russia's Gazprom said it wouldn't restart flow through the Nord Stream pipeline. Benchmark European gas futures surged 24% to EUR275.88 a megawatt-hour. U.K. gas prices jumped 22% to 693 British pence a therm. Gazprom's announcement that it would keep the Nord Stream pipeline closed will only heighten fears in Europe that Russia is intentionally curtailing supplies due to the region's support for Ukraine. Gazprom blamed the further stoppage on a technical problem. EU states have been largely successful in filling their gas stocks ahead of winter, but stockpiles only account for around 25% of the region's supplies during the season. (william.horner@wsj.com)

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Aston Martin Still Looking Shaky Despite Capital Raise, Rights Issue

0723 GMT – Aston Martin Lagonda Global Holdings' fundamentals remain shaky with or without its GBP653 million capital raise, Interactive Investor's Head of Investment Victoria Scholar says in a note. The U.K. luxury-car maker's first-half pretax loss tripled to GBP285.4 million, demonstrating pressures from the global chip shortage and supply-chain bottlenecks, Scholar says. “With shares down 65% year-to-date and 95% over the last five years, Aston Martin may be better off accepting a takeover off with the cheap share price and the slump in the pound arguably providing an attractive opportunity for an international automaker,” she says. An already rejected offer from Chinese auto maker Geely could have been a mistake in hindsight, she adds. Shares trade down 6.3% at 450.00 pence. (kyle.morris@dowjones.com)

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Dechra's Shares Fall, Seen Affected by Market Backdrop

0717 GMT – Dechra Pharmaceuticals outperfomed during the pandemic but the volatile backdrop and the risk of recession continues to suggest a bumpy path ahead, interactive investor's head of investment Victoria Scholar says in a research note as shares fall 5% after FY 2022 earnings. The U.K. veterinary pharmaceutical company has been facing a challenging 2022–a fall of more than a third of its value since the peak–despite reporting a 14% jump in revenue, raising its dividend and previously announcing further acquisitions, the analyst adds. “The fundamentals of the business remain robust with no sell recommendations on the stock from the analyst community,” Scholar adds. (michael.susin@wsj.com)

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Vistry and Countryside Expected to Benefit From Working Together

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September 05, 2022 05:57 ET (09:57 GMT)

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