UK market update – Burberry names new CEO, Deliveroo raises guidance

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imageStock Markets11 hours ago (Oct 20, 2021 07:40)

© Reuters.

By Samuel Indyk

Investing.com – At 07:38BST, FTSE 100 Futures are trading lower by 0.15% at 7,190.

In FX markets, GBP/USD is trading at 1.3786, EUR/GBP is trading at 0.8443. The US Dollar Index is flat.

Today’s calendar highlights include Eurozone CPI, Canadian CPI, US crude oil inventories.

Data

UK CPI in September slipped to 3.1% YoY versus expectations of 3.2% (Previous 3.2%). Core CPI was 2.9% versus expectations of 3.0% (Previous 3.1%). Factory gate prices rose 6.7% in the year to September 2021, up from 6.0% in August.

The ONS said inflation fell back due to the unwinding effect of last year’s ‘Eat Out to Help Out’ which was a factor in pushing up the rate in August. However, this was partially offset by most other categories, including price rises for furniture and household goods and food prices falling more slowly than this time last year.

Stocks

Burberry (LON:BRBY) – Names Jonathan Akeroyd as Chief Executive Officer and Executive Director, effective 1 April 2022.

Rio Tinto (LON:RIO) – Unveiling a new target to reduce its Scope 1 & 2 carbon emissions by 50 per cent by 2030. Targeting spending around $7.5 billion in direct capital expenditure decarbonising Rio Tinto’s assets from 2022 to 2030.

Antofagasta (LON:ANTO) – Q3 group copper production up 1.5% to 181,100 tonnes. Group gold production up 8.8% to 66,800 ounces. Copper production guidance is unchanged from August update. 2022 copper production is expected to be 660-690,000 tonnes.

BHP Group (LON:BHPB) – Raised its offer for Noront Resources to CAD 0.75 per share, above Wyloo Metals bid of CAD 0.70.

Anglo American (LON:AAL) – Value of rough diamond sales (Global Sightholder Sales and Auctions) for De Beers’ eighth sales cycle of 2021 amounts to $490 million.

Deliveroo (LON:ROO) – Gross transaction value (GTV) up 58% YoY in Q3. Full year GTV growth guidance increased to 60-70% from 50-60%. Full year gross profit margin (as % of GTV) guidance unchanged.

Morrisons (LON:MRW) – Shareholders voted to approve CDR’s takeover offer.

Segro (LON:SGRO) – £26 million (Q3 2020: £16 million) of new headline rent signed during the quarter. Vacancy rate reduced further to 3.2% (30 June 2021: 4.3%) predominantly due to strong demand. Company said it heads into final months of 2021 with confidence in ability to drive further sustainable growth in rental income, earnings and dividends.

Hammerson (LON:HMSO) – Footfall in all territories now stands at circa15-20% below 2019 levels. Rent collection rates have improved with 70% of group billable rent collected for Q4 to date. FY 2020 collections now stand at 94% and FY 2021 YTD at 78%.

Avast (LON:AVST) – Q3 revenue up 5.6% on an organic basis to $232.7 million. Billings growth accelerated through the quarter and the company expects H2 billings growth of mid to high single digits. Avast reaffirms its FY 2021 outlook for Revenue to be at the upper end of 6-8% growth, and a broadly flat Adjusted EBITDA margin percentage.

Metro Bank (LON:MTRO) – Q3 total deposits of £16.412 billion were 1% below Q2. Q3 total net loans of £12.315 billion were broadly flat. The Bank’s MREL resources currently exceed its requirement of 20.5%, however as indicated at the half year, the Bank is comfortable operating within buffers.

Pagegroup (LON:PAGE)/Diploma (LON:DPLM) – PageGroup Chair David Lowden to step down before the company’s 2022 AGM and become Chair of Diploma (LON:DPLM). A process to identify his successor is underway.

Balfour Beatty (LON:BALF) – Reached agreement for the conversion of its £375 million revolving credit facility to the largest sustainability linked loan in the UK construction industry to date, extending the maturity to October 2024.

BBGI Global Infrastructure – Entered into an agreement to acquire a 25% interest in Center Hospitalier de l’Université de Montréal. The purchase price for the investments is approximately CAD 88 million.

Crest Nicholson (LON:CRST) – Announces new medium targets including geographical expansion to create significant shareholder value with strong earning accretion to be delivered from the enlarged group. The company also announced new climate change targets.

Arena (LON:ARE) – IHC Industrial Holding and Tasheel Holding Group have reached an agreement to purchase Arena for 21 pence per share in cash, valuing the company at £71.0 million on a fully diluted bases.

Boohoo (LON:BOOH) – Downgraded to underweight from equal weight at Morgan Stanley (NYSE:MS).

IAG (LON:ICAG) – Downgraded to hold from buy by Peel Hunt.

BHP – Downgraded to hold from buy at Jefferies.

Rio Tinto – Downgraded to hold from buy at Jefferies.

UK market update – Burberry names new CEO, Deliveroo raises guidance

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