The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRMG.L Share News (RMG)

  • There is currently no data for RMG

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET MIDDAY: BoE raises key UK rate by half point to 2.25%

Thu, 22nd Sep 2022 12:09

(Alliance News) - Stocks in London were trading in the red at midday on Thursday after the Bank of England raised UK interest rates by half a percentage point to 2.25%.

Three members of the Monetary Policy Committee voted in the minority to raise the key bank rate by a more-aggressive three-quarters of a percentage point.

The BoE explained that it expects peak consumer price index inflation to be lower than previously thought at just under 11%, due to the UK government's recently announced energy price measures.

Sterling was quoted at USD1.1314 midday Thursday, down against USD1.1336 at the London equities close on Wednesday.

The FTSE 100 index was down 8.52 points, or 0.1%, at 7,229.12 at midday on Thursday. The mid-cap FTSE 250 index was down 212.11 points, or 1.1%, at 18,502.56. The AIM All-Share index was down 5.34 points, or 0.6% at 850.00.

The Cboe UK 100 index was down 0.1% at 721.89. The Cboe 250 was down 1.1% at 15,851.04, and the Cboe Small Companies down 0.2% at 12,647.73.

In the FTSE 100, JD Sports fell 6.1%. The sportswear retailer was the worst blue-chip performer at midday after reporting a rise in interim revenue but a drop in profit.

In the six months to July 30, pretax profit dropped to GBP298.3 million from GBP364.6 million. JD Sports explained this was due to the previous year experiencing a one-off benefit in the US from government stimulus.

Revenue rose by 14% to GBP4.42 billion from GBP3.89 billion a year previous.

JD Sports Chair Andrew Higginson said the results were at the "top end" of the company's expectations, touting the firm's "strength" of consumer engagement.

Looking ahead, the company expects its pretax profit for the year as a whole to be in line with the record performance for the year that ended January 29.

In the FTSE 250, Playtech was down 6.4% after posting a significant decrease in interim profit.

The Isle of Man-based gambling software developer said pretax profit had dropped 63% to EUR103.7 million in the six months to June 30 from EUR278.1 million a year before.

This fall was mainly due to the EUR299.9 million of unrealised fair value gains on financial assets recognised in the prior period, Playtech said.

Playtech's revenue, however, increased by 73% to EUR792.3 million from EUR457.4 million. This increase was driven by strong growth within regulated business-to-business markets and Snaitech, Playtech's Italian business.

Royal Mail was 3.2% lower. The postal service and courier company said that after five months of talks, it has not been able to reach an agreement with the Communication Workers Union, the main trade union for the telecommunications and postal delivery industries in the UK.

"The CWU has blocked any meaningful discussion on the change agenda the company has set out, and has not put forward any viable alternatives that will fund further pay increases," Royal Mail said.

Given the lack of progress, Royal Mail explained that it has taken two steps to move forward with the CWU, proposing that talks should be taken to the Advisory, Conciliation & Arbitration Service and saying it wants to modernise the ways of working with the CWU.

Royal Mail added that it made a loss of GBP92 million in the first quarter, and said it needs to "adapt much faster to adapt to changing customer demands in a highly competitive market".

PZ Cussons climbed 1.7% on a "resilient" performance in the most recent financial year, with dips in both revenue and profit amid a "challenging" market backdrop.

For the year ended May 31, the Manchester-based manufacturer of personal care brands such as Imperial Leather and St Tropez said revenue slipped by 1.7% to GBP592.8 million from GBP603.3 million the year before, as "adverse FX movements and net disposals more than offset life-for-like growth".

PZ Cussons' pretax profit declined 8.7% to GBP65.3 million from GBP71.5 million due to the "reduction in revenue and a brand impairment", the firm explained.

Nonetheless, PZ Cussons raised its annual dividend by just over 5%.

Elsewhere in London, Biome Technologies plunged 49% as the bioplastics and radio frequency technology firm reported that logistical difficulties were taking their toll on the company's future revenue.

Biome reported a pretax loss of GBP667,000 in the six months to June 30, narrowed slightly from GBP790,000 the year before. Revenue declined 7.7% to GBP2.4 million from GBP2.6 million the year before.

Looking forward, however, Biome said revenue for 2022 and 2023 will now be "substantially below current market expectations" due to supply chain problems and concerns over consumer demand.

In mainland Europe, the CAC 40 index in Paris was down 0.8%, while the DAX 40 in Frankfurt was down 0.6%.

The euro traded at USD0.9874, flat against USD0.9879 late Wednesday. Against the yen, the dollar was quoted at JPY142.74, down against JPY144.13.

Japan's finance ministry said it intervened in the currency market to bolster the yen, which has plummeted against the dollar in recent months on the widening policy gap between the US and Japanese central banks.

It was the first government intervention to prop up the currency since 1998 and came after the dollar surged to nearly JPY146 earlier in the day.

The yen has been weakening against the dollar for months, but sank further on Thursday after the US Federal Reserve again hiked rates to tame inflation, while the Bank of Japan left its ultra-loose monetary policy in place.

In a statement, the Japanese central bank said it was "aiming to achieve the price stability target of two percent, as long as it is necessary".

The Federal Reserve, meanwhile, "will keep at it" until inflation is well and truly tackled, Chair Jerome Powell said after a third successive 75 basis point rate hike by the US central bank.

An executive board member of the European Central Bank also expressed the central bank's willingness to raise interest rates further in the fight against record-high inflation.

Brent oil was trading at USD90.24 a barrel, up slightly from USD89.80 late Wednesday. Gold was quoted at USD1,668.30 an ounce, slightly higher than USD1,667.36 on Wednesday.

By Heather Rydings; heatherrydings@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

More News
22 Nov 2021 09:25

LONDON BROKER RATINGS: Stifel cuts Auto Trader to Hold from Buy

LONDON BROKER RATINGS: Stifel cuts Auto Trader to Hold from Buy

Read more
19 Nov 2021 09:39

LONDON BROKER RATINGS: Credit Suisse cuts Johnson Matthey to Neutral

LONDON BROKER RATINGS: Credit Suisse cuts Johnson Matthey to Neutral

Read more
18 Nov 2021 17:04

LONDON MARKET CLOSE: Stocks mixed on Europe Covid resurgence fears

LONDON MARKET CLOSE: Stocks mixed on Europe Covid resurgence fears

Read more
18 Nov 2021 12:10

LONDON MARKET MIDDAY: FTSE left behind as CAC and DAX hit records

LONDON MARKET MIDDAY: FTSE left behind as CAC and DAX hit records

Read more
18 Nov 2021 08:55

TOP NEWS: Royal Mail plots GBP400 million return as profit jumps

TOP NEWS: Royal Mail plots GBP400 million return as profit jumps

Read more
18 Nov 2021 08:48

LONDON MARKET OPEN: FTSE 100 trails behind as pound trades at USD1.35

LONDON MARKET OPEN: FTSE 100 trails behind as pound trades at USD1.35

Read more
18 Nov 2021 07:54

LONDON MARKET PRE-OPEN: 3rd Playtech bidder but Metro Bank suitor out

LONDON MARKET PRE-OPEN: 3rd Playtech bidder but Metro Bank suitor out

Read more
18 Nov 2021 07:02

Royal Mail to return £400m to shareholders as profit soars

(Sharecast News) - Royal Mail said it would return £400m of cash to shareholders as the company reported soaring first-half profit fuelled by a boom in parcel deliveries.

Read more
17 Nov 2021 22:46

Thursday preview: Philly Fed, Royal Mail in the spotlight

(Sharecast News) - The key data release on Thursday was expected to be the Philly Fed´s regional manufacturing index, which economists believed would reveal a small improvement in activity levels for the month of November.

Read more
14 Nov 2021 17:10

Sunday newspaper round-up: IAG, The Hut Group, Nvidia

(Sharecast News) - A cash call would be the quickest way for IAG to tackle its €12.3bn of debt and begin paying a dividend again, HSBC aviation analyst Andrew Lobbenberg said. If not, then the carrier would have to resort to its cash flows. Any decision on a rights issue would likely be taken by the company's new bos, Nicholas Cadbury, when he started early the following year. Lobbenberg had already said in September that plans to raise cash for IAG might follow positive news such as the reopening of travel to the US. - Financial Mail on Sunday

Read more
11 Nov 2021 15:51

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

Read more
7 Nov 2021 16:29

Sunday newspaper round-up: JD Sports, Abrdn, Snowfox Group

(Sharecast News) - The head of JD Sports, Peter Cowgill, is facing questions from the Competition and Markets Authority over his meeting in a car park with Footasylum boss, Barry Brown. They were filmed at the weekend sitting in a black Mercedes at Bridge Hall industrial park, leading to the watchdog's investigation into whether or not they breached the rules governing JD Sport's takeover of its smaller rival. In the video, which was seen by The Sunday Times, they were joined in the car by JD's general counsel, Siobhan Mawdsley, who later left. The investigation comes as the CMA is still examining JD's 2019 offer to buy out Footasylum. - Sunday Times

Read more
4 Nov 2021 09:28

LONDON BROKER RATINGS: Barclays cuts Aveva; DB cuts Trainline

LONDON BROKER RATINGS: Barclays cuts Aveva; DB cuts Trainline

Read more
3 Nov 2021 17:05

LONDON MARKET CLOSE: Stocks edge lower as markets brace for Fed taper

LONDON MARKET CLOSE: Stocks edge lower as markets brace for Fed taper

Read more
3 Nov 2021 09:38

LONDON BROKER RATINGS: Royal Mail, Anglo American and WPP get upgrades

LONDON BROKER RATINGS: Royal Mail, Anglo American and WPP get upgrades

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.