Title: FTSE 100 Struggles as Oil Prices Rise, AB Dynamics Recovers
Introduction:
The FTSE 100 index experienced a decline due to concerns about prolonged inflation as a result of higher oil prices. Several stocks, including IAG and BT Group, faced downward pressure. Meanwhile, AB Dynamics showcased a recovery, and Severn Trent led the board of companies with rising stocks. The FTSE 250 index also witnessed a decline, with Royal Mail owner International Distribution Services being one of the major losers. On the positive side, Babcock International saw a significant increase in its share value. In another news, Poundland owner Pepco announced a review of its Central and Eastern Europe division, while London-owned fintech company WorldFirst restructured its Asian business. Additionally, former Apple design chief Jony Ive is seeking funding to create an AI-powered rival to the iPhone, and oil prices approach $100 per barrel.
FTSE 100 Struggles as Oil Prices Rise:
The FTSE 100 index faced downward pressure due to concerns about prolonged inflation as a result of higher oil prices. Key details include:
– The FTSE 100 index fell 57.85 points to 7,535.37.
– IAG, the owner of British Airways, experienced a 3% decline.
– BT Group also saw a fall of 2.75p to 114.5p.
– Barratt Developments and M&G faced declines of 7% and 5%, respectively.
– Severn Trent led the rising stocks, with a 10p increase to 2,320p.
AB Dynamics Recovers:
AB Dynamics, a vehicle testing and simulation company, showcased signs of recovery and exceeded trading expectations. Here are the key points:
– AB Dynamics experienced a rise of 28p to 1,668p in its stock value.
– The company is on track to achieve full-year revenue of over £100 million for the first time.
– Analysts at Liberum justified a price target of 2,700 pence due to the strong momentum.
Review of Central and Eastern Europe Division by Pepco:
Pepco, the owner of Poundland, announced a review of its troubled Central and Eastern Europe division. The company is reshuffling its management team following a second profit warning in two weeks. The key highlights are:
– Weak demand for clothing in countries such as Poland and the Czech Republic led to the decline in sales.
– Poundland, however, performed better with record quarterly sales.
– Pepco plans to refocus on its Central and Eastern Europe business.
– A strategy review will be conducted to get the core business back on track, and the management team has been reshuffled accordingly.
Restructuring of WorldFirst’s Asian Business:
London-owned fintech company WorldFirst has restructured its Asian business, moving it away from UK oversight. Key details include:
– The Asian subsidiary of Ant Group, owned by Jack Ma, now oversees WorldFirst Asia.
– WorldFirst made this decision based on strategic alignment of legal entities.
– Ant Group was fined around £800 million by the Chinese financial regulator recently.
Former Apple Design Chief Seeks Funding for Rival iPhone:
Jony Ive, former design chief at Apple, is in talks with Japanese investment giant SoftBank to raise $1 billion for his AI-powered rival to the iPhone. Here are the main points:
– Jony Ive is partnering with OpenAI, the maker of ChatGPT, to develop an AI-powered consumer device.
– The aim is to create a more intuitive user experience than the iPhone.
– Ive left Apple in 2019 after a nearly 30-year career there.
Oil Prices Approaching $100 a Barrel, Asian Markets Struggling:
Oil prices are near $100 a barrel, and Asian markets are facing challenges. Key highlights are:
– Brent crude futures stood at $97.53 per barrel, the highest level since November.
– Concerns about prolonged inflation have arisen due to rising oil prices.
– Tokyo’s Nikkei 225 and the Hang Seng have fallen over 1%, with the Hong Kong-based benchmark heading for its lowest close of the year.
888 Issues Profit Warning After Entain:
888, the owner of William Hill, has become the second gambling giant in four days to warn investors about the impact of various factors. Key details include:
– 888 issued a profit warning due to punter-friendly sports results, safer gambling reforms, and compliance changes.
– The company’s revenue is expected to decline more than previously thought.
– 888 shares have experienced a decline of 8.2% over the past week.
Conclusion:
The FTSE 100 index struggled as higher oil prices raised concerns about prolonged inflation. Several stocks faced pressure, while some showcased recovery. Pepco announced a review of its Central and Eastern Europe division, and WorldFirst restructured its Asian business. Jony Ive is seeking funding to create an AI-powered rival to the iPhone. Oil prices approached $100 a barrel, impacting Asian markets. Additionally, 888 issued a profit warning following Entain’s warning earlier in the week.
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IAG falls 3% as FTSE 100 struggles, AB Dynamics recovers
The FTSE 100 index came under fresh pressure today as higher oil prices fueled concerns that inflation will take longer to return to target levels. The top flight fell 57.85 points to 7,535.37.
Stocks under pressure included British AIRways owner IAG, which fell 3% or 4.55p to 144.1p, and BT Group after a fall of 2.75p to 114.5p.
Barratt Developments and M&G also fell 7% and 5% respectively when they began trading without the value of upcoming dividends.
Severn Trent led a board of shortened rises, rising 10p to 2,320p, as Barclays analysts gave the water company an “overweight” recommendation and a 3,360p target.
The FTSE 250 index fell 107.75 points to 18,112.48, with big losers including Royal Mail owner International Distribution Services down 7.6p to 255.8p.
On the rise board, defense engineering company Babcock International rose 6% or 22.6p to 411p after providing a reassuring update on its recovery progress. The AGM statement highlighted improved cash flows compared to the previous year.
Top-performing stocks on the AIM Junior Market included vehicle testing and simulation company AB Dynamics, which rose 28p to 1,668p as it said better-than-expected trading left it on track to achieve full-year revenue over £100 million for the first time. Analysts at Liberum said the strong momentum justified a price target of 2,700 pence.
Poundland owner launches review as Central and Eastern Europe struggle
Poundland owner Pepco said it will “refocus” on its troubled Central and Eastern Europe division as it reshuffled its management team following a second profit warning in two weeks.
The company said “record warm weather” in its core markets led to weak demand for clothing in countries such as Poland and the Czech Republic, as sales declined year-on-year. It has not yet benefited from a slowdown in inflation, as it is still selling items it bought at the beginning of the year at high costs.
The warning comes despite the Poundland division of the business performing better, following record quarterly sales in the three months to June 30.
Despite the strong performance in the UK, Pepco launched a strategy review, which will focus on getting the “core” Central and Eastern Europe business back on track. The group also reshuffled its management team, putting Poundland boss Barry Williams in charge of the Central and Eastern Europe-based Pepco brand, with the previous head of that division, Anand Patel, leaving with immediate effect.
Chief executive Andy Bond said: “We need to improve profitability and cash generation in our established business alongside a more targeted growth plan in the markets where we have a current presence.”
Earlier this month, Poundland expanded its holdings in the UK when it agreed to buy 71 former Wilko stores. These stores will be renamed Poundlands.
London owned by Jack Ma fintech WorldFirst has moved its Asian business away from UK oversight in a major restructuring, company accounts published today show.
WorldFirst Asia, a business unit that accounted for around two-thirds of the company’s revenue and 70% of its profits, has been transferred to an Asian subsidiary of the billionaire Ma’s Ant Group. WorldFirst said it made the decision in January based on “the strategic alignment of the legal entities.”
In July, Ant Group was fined around £800 million by the Chinese financial regulator after being accused of breaching rules on corporate governance, financial consumer protection, payments and settlements business, as well as anti-laundering obligations. of money.
WorldFirst, which was acquired by Ant Group in 2019 in a deal believed to be worth more than $700m (£550m), last year began an internal review called the ‘Global Base Line’ project, in which A number of the company’s management, risk, and supervisory functions were moved from the United Kingdom to China.
Former Apple design chief seeks $1 billion to build rival iPhone
Apple’s former design chief is in talks to raise $1 billion to compete his iPhone with an artificial intelligence-powered rival.
London-born Jony Ive, whose work was instrumental in the design of a suite of Apple products including the iPod, iPhone and MacBook, is trying to raise funds from Japanese investment giant SoftBank in partnership with ChatGPT maker OpenAI, according to the Financial Times.
Ive and OpenAI head Sam Altman are exploring what an AI-powered consumer device might look like, including how to make the user experience more intuitive than the iPhone.
I left Apple in 2019 after a nearly 30-year career there.
Oil stocks support FTSE 100, Babcock shares up 10%
The FTSE 100 index is largely unchanged this morning after shares in oil majors BP and Shell rose around 1% following last night’s latest rise in Brent crude futures.
Severn Trent is the best performing blue-chip, up 38p to 2,348p, as Barclays analysts gave the water company an “overweight” recommendation and a 3,360p target.
At the top of the FTSE 100 declines chart, Barratt Developments and M&G are down 5% and 3% respectively as they now trade without the value of upcoming dividends.
The FTSE 250 index is 18.83 points lower at 18,201.40, with shares in WIlliam Hill owner 888 Holdings down 12% or 12.85p to 97.65p after today’s profit warning .
On the rise board, defense firm Babcock International is up 10% or 39p to 427.4p following a reassuring update on its recovery progress.
And pub group Mitchells & Butlers rose 5.4p to 220p after forecasting results at the top end of expectations as cost pressures ease.
Brent crude oil rises 0.75%
Just minutes into the day’s trading session in London, the FTSE 100 is holding steady while Brent crude is up 0.75%. Here’s a look at key market data:
Oil prices near $100 a barrel, Asian markets struggle
Brent crude futures today stood at $97.53, the benchmark oil’s highest level since last November after yesterday’s figures showed a big drop in US stockpiles.
The larger-than-expected drop of 2.2 million barrels has added to supply concerns after Saudi Arabia extended its voluntary production cut until the end of the year.
The recent rise in oil prices has fueled concerns that inflation will take longer to return to target levels, forcing central banks to keep interest rates high for longer.
The S&P 500 index is at its lowest level in three months after a 4% drop last week, but stabilized last night. CMC Markets forecasts that the FTSE 100 index, which fell 0.4% yesterday, will open 17 points higher at 7610 as traders carry out end-of-quarter positioning.
In Asia, Tokyo’s Nikkei 225 and the Hang Seng have fallen more than 1% as the Hong Kong-based benchmark heads for its lowest close of the year.
The sale came as it emerged that shares in debt-laden Chinese property giant Evergrande had been suspended.
888 warns on profits days after rival Entain
William Hill owner 888 has become the second gambling giant in four days to warn investors about the impact of factors including the UK’s new safer gambling rules.
The company issued a profit warning today, revealing that it now expects revenue to decline by 10% more than previously thought and margins to be 10% lower than expected.
Like Entain earlier in the week, 888 blamed punter-friendly sports results and safer gambling reforms the Government announced in April. 888 also noted a “significant and ongoing impact of compliance changes implemented in dotcom markets,” where the legal status of online gambling is often ill-defined. 888 made major changes to its policies in these countries after launching an internal investigation in January into its screening of high rollers in the Middle East.
Chief executive Lord Mendelsohn said: “We are taking significant steps to improve the quality and long-term sustainability of our revenues, but performance in the third quarter has been below our expectations, and this means we now expect to finish the year with an EBITDA below our previous level. expectation.”
888 shares closed at 109.9p yesterday, up 24.9% for the year but 80% off their high in 2021. They are down 8.2% over the past week, mainly due to extrapolation of Entain’s income warning.
Summary: yesterday’s main news
Good day. Here’s a summary of our top headlines from yesterday:
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