DJ FTSE Edges Lower, Barratt Developments Rises After 1Q Sales Stay Strong

Barratt Developments Rises After 1Q Sales Stay Strong

Shares in Barratt Developments top the FTSE 100 index, up 5% after the U.K. house-builder reported higher total forward sales at the start of the 2021/22 financial year and named a new finance chief. Sales rates at Barratt have remained at very strong levels despite the curtailment of government incentives to home-buyers, brokerage Davy says. "Importantly, the company has not been disrupted by the supply-chain issues that have plagued some of the rest of the U.K. Guidance for the year has been reiterated," Davy analysts say.

Companies News:

Petrotal 3Q Oil Production Was 2% Below Guidance

Petrotal Corp. said Wednesday that its third-quarter production was 2% below guidance.

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Halfords Appoints Jo Hartley as CFO From April 2022; Loraine Woodhouse to Retire

Halfords Group PLC said Wednesday that it has appointed Jo Hartley as its new chief financial officer, replacing Loraine Woodhouse who is retiring next year.

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Falanx Group Says Cybersecurity Division Swung to 1H Adjusted Ebitda Profit on Revenue Jump

Falanx Group Ltd. said Wednesday that its cybersecurity division swung to an adjusted Ebitda profit in the first half of fiscal 2022, with revenue in the segment up 29% on-year.

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Anglo African Agriculture Offers Alternative Solution to Unlock Comarco Merger

Anglo African Agriculture PLC said Wednesday that it has offered Comarco shareholders an alternative solution to close the reverse takeover process between the two companies.

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Countryside Properties to Appoint Tom Wright as Interim CFO

Countryside Properties PLC said Wednesday that it will name Group Financial Controller Tom Wright as interim chief financial officer, as current Chief Financial Officer Mike Scott plans to move to Barratt Developments PLC.

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Quartix Technologies Expects 2021 Revenue, Profit in Line With Views

Quartix Technologies PLC said on Wednesday that it expects 2021 revenue, profit, and free cashflow to be in line with market consensus.

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Pendragon Appoints Ian Filby as Non-Executive Chairman

Pendragon PLC said Wednesday that it has appointed Ian Filby as its new non-executive chairman.

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Versarien Chairman James Stewart to Resign

Versarien PLC said Wednesday that Nonexecutive Chairman James Stewart will step down at the end of the year, and that Diane Savory will be appointed as his replacement on Jan. 1.

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Gulf Marine Services Swung to 1H Pretax Profit

Gulf Marine Services PLC said Wednesday that it swung to pretax profit in the first half of the year on the back of higher revenue and lower costs, and that it expects a significant improvement to Ebitda in the second half.

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Adriatic Metals Secures $102 Mln Equity Raise to Build Silver Project in Bosnia and Herzegovina

Adriatic Metals PLC said Wednesday that it has completed a $102 million equity financing, the largest for a London-listed mining company in 2021, to construct its Vares silver project in Bosnia and Herzegovina.

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WPP's Glover Hering and Rival Sard Verbinnen & Co Agree Merger

WPP PLC said Wednesday that its majority-owned subsidiary Finsbury Glover Hering Corp. has reached an agreement merge with Sard Verbinnen & Co to merge and create a major strategic communications and advice firm.

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Deutsche Bank Says Claims by Spanish Hotel Group Are Unfounded

Deutsche Bank AG will defend itself vigorously against claims made by Spanish hotel group Palladium, a company spokesman said Wednesday.

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Novolipetsk Steel 3Q Sales Fell Despite Higher Output

Novolipetsk Steel on Wednesday posted lower sales volumes but higher output for the third quarter.

Market Talk:

Investors Should Take UK GDP Growth With Pinch of Salt

0946 GMT - Investors shouldn't put too much faith in data showing a rise in U.K. economic growth in August, an asset manager says. While a 0.4% increase in GDP could be taken as meaning growth might be back on an upward trajectory, investors should "take the figures with a pinch of salt," YOU Asset Management says. While service-sector businesses fared the best as infection rates fell and people socialized with others more, the current picture is less rosy. "The U.K. is faced with a supply-chain crunch, rising prices and labor shortages, all of which could create a drag on GDP growth as we move towards the usually busy festive period," YOU's Chief Executive Derrick Dunne says.

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UK GDP Slowdown Won't Deter BOE From Raising Rates, Says HSBC

0904 GMT - Lower-than-expected economic growth in August is unlikely to deter the Bank of England from raising interest rates, says HSBC. "For the BoE, this slowdown need not stop them from raising rates, if, as we believe, the slowdown in growth is largely driven by constrained supply," says senior economist Elizabeth Martins. GDP is now just 0.8% off its pre-pandemic level, which softens the argument from some of HSBC clients that it is surprising for the central to start tightening while the economy is still smaller than it was pre-pandemic, she says. HSBC still expects the BOE to raise rates three times, starting in February 2022, though with risks that it could do so sooner.

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UK Trade Could Be Further Hit by Shortages, EU Tensions

0900 GMT - Labor shortages in the U.K. are a factor in the relatively weak performance of the country's imports and exports, says William Bain, head of trade policy at the British Chambers of Commerce. Businesses in the country are also concerned about further disruption to trading terms in case of a major deterioration in EU-U.K. relationship over the next year, in the form of rising tariffs or loss of trade facilitation measures, he says. "This  would knock down a still fragile set of import and export data on EU-U.K. trade," Bain says. The U.K. adjusted global goods trade deficit in August stood at GBP15 billion, according to data from the Office for National Statistics.

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Slowdown in UK Economy Momentum Blights the Positive News, Says Berenberg

0847 GMT - Momentum is slowing in the U.K. economy as output edges toward its pre-recession level and supply side challenges grow, Berenberg's senior economist Kallum Pickering says. But the economist highlights that the U.K. is enjoying an astonishingly fast recovery and looks likely to reach its pre-recession output level by the first quarter of 2022. Furthermore, Pickering says demand-side fundamentals, which have driven the fast recovery so far, remain healthy. The global recovery and big policy stimulus add a major tailwind, he adds. Supply and inflation risks are likely to get worse before they get better, Pickering says. "But as global supply growth improves and bottlenecks ease, the strong demand fundamentals should contribute to above-trend growth over the medium-term," he says.

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Shortages, Energy Crisis Could Hobble UK Economy in Months Ahead

0835 GMT - The U.K. economy grew 0.4% in August after contracting 0.1% in July, confirming that the rapid gains registered during the reopening phase from the pandemic-induced lockdown are largely behind, Capital Economics' chief U.K. economist Paul Dales says. August's data add to the evidence that product and labor shortages are restraining economic activity, particularly in the manufacturing and construction sectors, he says. "We suspect shortages will be a bigger drag on GDP in September and October--the petrol crisis probably prevented some people from getting to work," Dales says. In this context, the U.K. economy isn't expected to rise much in the coming months, but growth should accelerate from mid-2022 and into 2023 once the current supply-related strains ease, he says.

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

(END) Dow Jones Newswires

October 13, 2021 06:35 ET (10:35 GMT)

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