FTSE 100 Slips on Weak Data and Inflationary Concerns – Morningstar.com

Market News: FTSE 100 7,100 -64.03 -0.89% FTSE 250 22,895.36 -127.04 -0.55% FTSE AIM 1262.87 -2.47 0.20%

The FTSE 100 fell 0.89% on Tuesday as weaker economic data drove markets lower and stronger sterling weighed on overseas revenue earners. "European markets have slumped alongside US indices, which appear to be resurfacing from their extended weekend with a largely pessimistic tone," IG Group's Joshua Mahony says. Inflation concerns also appear to have gripped U.K. investors Tuesday after a report from the government's public spending watchdog cautioned that high public debt levels are more vulnerable than ever to rising interest rates, AJ Bell's Danni Hewson says. "Today has felt like an adjustment off the back of yesterday's 'freedom focused' boost," Ms. Hewson says.

Kinovo's FY 2021 Pretax Profit Dropped on Lower Revenue

Kinovo PLC reported Tuesday a significant decline in pretax profit for fiscal 2021 as a result of a Covid-19 driven fall in revenue, and said that it is confident about its future.

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Microsaic Systems Says 1H Revenue Recovered

Microsaic Systems PLC said Tuesday that first-half revenue rose sharply and exceeded pre-pandemic levels after a change of business model in early 2021.

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Mulberry to End Paris Lease Early, Return When International Tourism Recovers

Mulberry Group PLC said Tuesday that its wholly owned subsidiary in France has agreed to terminate the lease of its store in Paris and exit the property early for 13.2 million pounds ($18.3 million).

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Mattioli Woods Expects to Report FY 2021 Profit in Line With Views

Mattioli Woods PLC said Tuesday that it expects to report profit in line with management expectations for the year ended May 31.

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Globalworth Mulls Implications of Recent Change of Control

Globalworth Real Estate Investments Ltd. said on Tuesday that it was notified late on Monday by CPI Property Group SA and Aroundtown SA about a number of transactions related to their existing holding, which have resulted in Zakiono Enterprises Ltd. holding a total of 51.5% of shares in the company.

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Building-Materials Distributor Lords Group to Raise GBP30 Mln in AIM Float

Lords Group Trading PLC, a distributor of building materials in the U.K., said Tuesday that it will raise 30 million pounds ($41.5 million) as part of its proposed initial public offering on London's junior AIM market.

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New Amsterdam Invest Raises EUR49.1 Mln in Amsterdam Listing

New Amsterdam Invest NV said Tuesday that it has listed on Euronext Amsterdam and raised funds in a placing with a total offer value of 49.1 million euros ($58.3 million).

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Logistics Software Company Microlise Group Plans to Float on London's AIM

Microlise Group PLC said Tuesday that it plans to float on London's junior AIM market.

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Kavango Resources Directors Invest GBP60,000 in Company

Kavango Resources PLC said Tuesday that directors Ben Turney and Mike Moles have invested a further 60,000 pounds ($83.070) in the company, taking total funds raised under a placing disclosed Monday to GBP2 million.

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Oil Companies Are Ordered to Help Cover $7.2 Billion Cleanup Bill in Gulf of Mexico

Some of the world's largest oil companies have been ordered to pay part of a $7.2 billion tab to retire hundreds of aging wells in the Gulf of Mexico that they used to own, capping a case that legal experts say is a harbinger of future battles over cleanup costs.

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CMO Group to Raise GBP27.3 Mln in London IPO

CMO Group PLC, an online building-materials retailer, said Tuesday that it plans to raise 27.3 million pounds ($37.8 million) at a valuation of GBP95 million, as part of its initial public offering on London's junior AIM market.

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TP Group Appoints David Lindsay as Interim CEO

TP Group PLC said Tuesday that it has appointed David Lindsay as interim chief executive officer with immediate effect.

Lloyd's of London Insurers Battle Back from Downturn

1254 GMT - Lloyd's of London insurers are acting to bounce back from an industry downturn, says J.P. Morgan Cazenove. While the Lloyd's sub-sector was one of the best-performing in European insurance between 2008 and 2017, it deteriorated after 2017 due to consecutive years of heavy catastrophe losses, casualty-related reserving concerns and the pandemic impact, JPM says. "There remains some uncertainties around casualty and cyber risks in particular, but we believe management teams are taking steps to address them," JPM analyst Ashik Musaddi says, upgrading Beazley and Hiscox to overweight from neutral. Still, it cuts Lancashire Holdings to neutral from overweight, saying it's more exposed to climate-change risks through higher catastrophe losses, as well as competition from third-party capital in reinsurance.

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Ultra Electronics Update Reinforces Strong Balance Sheet an Asset

1134 GMT - Ultra Electronics' 1H underlying performance was strong and exceeded expectations with an order book ahead of last year, Jefferies says. Net debt at the end of May was GBP32 million helped by strong advance payments and lower-than-expected capital expenditure, the U.S. bank says. Although there is some benefit from capex and R&D being lower than expected, the programs on which the defense-equipment provider has secured work promised good order intake at some point, Jefferies says. The update largely reflects what was likely to unfold in fiscal 2021 and reinforces the view that the strong balance sheet is an asset, Jefferies says.

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Sainsbury Sales Rise But It Needs to Keep Up Momentum

1100 GMT - J Sainsbury needs to stay on the ball despite a first-quarter sales boost and an increase in full-year profit guidance, AJ Bell says. Bell says the company is benefiting from continued online shopping after the pandemic, development of new delivery partnerships and price-cutting. That could increase potential takeover interest in the company and its rivals following a recommended $8.7 billion takeover bid for rival Wm. Morrison Supermarkets, the brokerage says. "A year into his tenure and Chief Executive Simon Thomas is sitting relatively pretty, but the supermarket sector is an extremely competitive and demanding one, so there's no room for complacency, particularly given the uncertainty over the direction Morrisons will take under its new ownership," Bell's investment director Russ Mould says. Shares gain 0.8%.

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Land Securities, British Land Face Downgrades on Looming Costs, Jefferies Says

1044 GMT - The cost of doing business for Land Securities and British Land is rising, with earnings dependency on shops and retail and impending hits from decarbonizing costs, Jefferies says. Jefferies reduces its dividend forecasts for the two major British real-estate companies. Given looming business model impairments, which at their most extreme could significantly weaken these business, the U.S. bank cuts its ratings for British Land and Land Securities to hold from buy. Instead, Jefferies reiterates it buy rating on "beds, meds and sheds" real estate trusts, like Tritax Big Box, LXI REIT, Big Yellow and PRS. Shares in British Land are down 3.6% at 503.6 pence, and Land Securities is down 3.6% at 679.6 pence.

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Purplebricks' New Pricing Model Should Build Up Share Price

1036 GMT - Online real estate agent Purplebricks is launching a new pricing model in July following trials in the north west of England, Peel Hunt says. Purplebricks' new money-back guarantee and simplified two-tier offer should support its medium-term 10% share ambition, which in turn is likely to result in 20% revenue growth a year and deliver significant upside to the current share price, the brokerage says. "As has been highlighted elsewhere, a lack of stock is a wider concern for the market, but the group is hopeful of an improving picture post the summer," Peel Hunt says, retaining its buy rating and target price of 120 pence.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

July 06, 2021 12:11 ET (16:11 GMT)

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FTSE 100 Slips on Weak Data and Inflationary Concerns - Morningstar.com