FTSE 100 closes 1.2% lower amid weak European business sentiment and inflation fears

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The FTSE 100 closed 1.2% lower on Tuesday, with data showing a broader deterioration in business sentiment in Germany and the European Union in September, CMC Markets UK analyst Michael Hewson said in a note. . Moreover, despite U.S. inflation numbers pointing to a spike, rising core prices mean inflation looks likely to be much more rigid than markets may have anticipated, says Hewson. “This means that while the narrative of peak inflation may well still hold, bringing it down from these levels is likely to be a much more uphill battle, requiring the pursuit of more aggressive rate hikes in the coming months. come, starting with 75 basis points next week, “he said. Ocado was the biggest drop of the day, down 15%, followed by Scottish Mortgage Investment Trust and IAG, down 5% and 4.4% respectively.

 
Companies News: 

Ocado Group warns of declining FY2022 sales as inflation hits consumers

Ocado Group PLC said on Tuesday that revenue rose in the third quarter of fiscal 2022, but it expects sales to decline for the full year as inflation affects the spending capacity of businesses. consumers.

Aveva close to GBP 30/share buyout by Schneider Electric, Sky Reports says

Aveva Group PLC is close to accepting a £30 ($35.05) takeover by French energy management and automation group Schneider Electric SE, Sky News reports, citing unnamed sources.

Fresnillo completes the construction of the connection to the Juanicipio network; sees operations begin at the end of October

Fresnillo PLC said Tuesday that all construction activities related to the final connection to the Juanicipio power grid in Mexico have been completed and that it expects to begin operations by the end of October.

Abrdn sells £262m stake in HDFC Life

Abrdn PLC announced on Tuesday that it has sold 43 million shares of HDFC Life Insurance Co. for 262 million pounds ($306.1 million), with the proceeds to be used to further strengthen its capital resources, support investments and continue to repay the excess capital.

Team17’s first-half pretax profit tumbled due to higher costs; Turnover up

Team17 Group PLC said on Tuesday its first-half pretax profit fell 20% due to higher administrative costs and sales, although revenue and adjusted profit rose.

Reduced Trustpilot’s first half pre-tax loss, increased revenue thanks to good exchange rates

Trustpilot AS said on Tuesday that its first-half pre-tax loss narrowed and revenue increased thanks to favorable exchange rates.

JTC 1H’s pre-tax profit fell as costs rose

JTC PLC said on Tuesday that pre-tax profit for the first half of 2022 fell as costs rose as it worked to complete the integration of seven acquisitions made last year.

Pre-tax profit of the 1H real estate franchise, increased turnover; Supports 2022 outlook

Property Franchise Group PLC said on Tuesday that its first-half profit and pre-tax income rose on the back of contributions from acquisitions, and that it was confident for the year as a whole.

Kape Technologies to raise up to $200 million to fund acquisitions

Kape Technologies PLC said on Tuesday it plans to raise up to $200 million through a share offering and will use the money for acquisitions.

Mattioli Woods’ pre-tax profit for fiscal 2022 increased and increases dividend

Mattioli Woods PLC said on Tuesday that pre-tax profit for the 2022 financial year had increased, supported by recent acquisition contributions, and that it had increased its dividend payout as it continued to operate in line with opinions.

Fevertree’s first-half operating profit fell due to rising costs

Fevertree Drinks PLC on Tuesday reported a significant drop in operating profit for the first half of 2022 after seeing higher energy and freight costs.

 
Market Talk: 

Mattioli Woods’ model could benefit from a difficult context

0904 GMT – Mattioli Woods’ business model has a more resilient revenue performance compared to peers as it incorporates time and fixed fee cost streams, Canaccord Genuity analysts Justin Bates and Portia Patel say in a note. research. The wealth and asset management business could benefit from a challenging macro backdrop as it increases client demand for advice, generating more uncorrelated revenue, they say. It could also help mitigate the effects of lower investment income due to slower market activity, they add. Canaccord has a buy recommendation on the stock and a price target of 895 pence per share. (michael.susin@wsj.com)

Fevertree’s Downside Bias Risk Is Considered “Disappointing”

08:57 GMT – Fevertree Drinks’ downside-biased indicated risk is disappointing given the company’s track record of beating sales forecasts, RBC Capital Markets analysts Emma Letheren and James Edwardes Jones said in a research note . Separately, Canadian bank analysts expect the spirits mixer maker’s business momentum to become increasingly challenging given macro factors. However, the fact that the company reiterated its guidance for the full year is reassuring, they add. RBC has a price target on the stock of 700 pence per share. The shares are up 15% at 1,088.00 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)

 

Contact: London NewsPlus; paul.larkins@wsj.com

 

(END) Dow Jones Newswire

September 13, 2022 12:55 p.m. ET (4:55 p.m. GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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