Markets Defused is an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
Intermediate Capital Group (LSE:ICP) has been upgraded by Deutsche Bank which said "risk off periods have tended to be the best time to buy" the alternative asset manager.
Analysts at the bank moved their rating to 'buy' from 'hold', with a target price unchanged at 2550p compared to a last close price of 1922p.
Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) made a significant announcement on Tuesday, news that initially sent the AIM-quoted share up as much as 30% in opening deals.
It was thanks to the latest update from the Itumbula West-1 (ITW-1), at the company’s potentially world-class helium project in Tanzania.
Japanese technology conglomerate and Arm Holdings PLC (NASDAQ:ARM) owner SoftBank’s first-quarter earnings call comes amid an intensely volatile time for both tech stocks and the Tokyo Stock Exchange.
SoftBank’s share price went into freefall on Monday and while there were signs of recovery on Monday, the company’s valuation remains more than 20% lower week on week.
Harland & Wolff Group Holdings PLC (AIM:HARL) has lost a £120 million contract from the government of the Falkland Islands.
The embattled shipbuilder confirmed negotiations over its bid to take on the replacement port project had been unsuccessful on Tuesday.
Caterpillar Inc (NYSE:CAT, ETR:CAT1) shares rumbled higher after the maker of construction and mining equipment reported higher than expected quarterly profit despite a slip in sales.
Adjusted per share profit for the second quarter of 2024 came in at $5.99, Caterpillar reported on Tuesday, against $5.55 last year and above consensus expectations for $5.54.
Investors were warned today that Monday’s stock market rout is only the beginning of a correction with more turbulence to come.
Wall St bank JP Morgan warned that the “carry trades” chaos that was blamed for much of the turmoil still has a long way to go.
Shares in Yum! Brands Inc (NYSE:YUM) rose after the KFC, Pizza Hut and Taco Bell owner served up second-quarter earnings that beat Wall Street forecasts, but revenues were lower than expected.
Underlying earnings per share in the three months to June came to $1.35, down from EPS of $1.41 a year ago, but beat the consensus estimate of $1.32 per share, per Zacks.
Treasury-backed National Savings & Investments (NS&I) has launched its first two and five-year fixed-rate bonds since 2009.
Unveiling the new state-guaranteed savings products on Tuesday, NS&I also announced an interest rate increase on its three-year fixed-rate bond.
Fuller Smith & Turner PLC (AIM:FSTA) has completed the purchase of a seven-strong portfolio of Warwickshire-based pubs for £22.5 million.
The Lovely Pubs outlets, which include one with 16 boutique bedrooms, “are a highly complementary addition to Fuller’s existing portfolio of pubs and hotels in neighbouring counties”, the Chiswick pubco said in a statement.
Trade unions celebrated Downing Street's plans to overturn some of the previous government's restrictions on industrial action, which demanded that a minimum level of service needed to be provided during strikes.
The government said it felt the minimum service level laws "unduly restrict the right to strike and undermine good industrial relations".
UBS is keeping faith with Universal Music Group (EURONEXT:UMG) and reckons the recent slowdown in streaming growth is just temporary.
Looking at the disappointing recent update, UBS concludes it is a temporary slowdown in global subscriber growth, as some major platforms feel the consequences of price rises without investment in their product, that will recover.
There is no denying that prominent construction materials suppliers Travis Perkins (LSE:TPK) and SIG PLC (LSE:SHI) both underwhelmed in their respective trading updates this Tuesday.
FTSE 250-listed Perkins cut its full-year forecasts after revenues slumped in the first half, while SIG announced a culling of its workforce to help wrest itself away from plummeting profit margins.
Motorists are still paying inflated prices for fuel at the forecourt, according to the latest monthly data from the RAC, with no signs of a decrease soon.
Prices are, on average, between 5p and 8p a litre more than they should be, according to the motoring lobby group.
Faron Pharmaceuticals Limited (AIM:FARN) told investors it has hired Dr Petri Bono as its new Chief Medical Officer (CMO), and he will join later this month.
Dr Bono, who starts the role on 15 August, was previously CMO at Terveystalo, Finland's largest private healthcare service provider, and before that, he held various leadership roles at Helsinki University Hospital.
Shares in Uber Technologies Inc (NYSE:UBER, ETR:UT8) surged 8% in pre-market trading after it surpassed Wall Street's second-quarter revenue and core profit estimates.
The ride-hailing giant benefited from steady demand for its ride-sharing and food-delivery services as more people returned to offices and increased outings.
Mosman Oil and Gas Ltd (AIM:MSMN) shares traded higher in London after the explorer told investors it has received an extension for its EP145 Permit from the Northern Territory Government in Australia.
It means that the permit will continue until February 2027, and, notably, it includes a six-month suspension of work obligation conditions to February 2025.
Rightmove PLC (LSE:RMV) and OpenRent’s split will provide a useful test case for how letting agents fare by not listing properties on the portal, analysts say.
Having failed to agree on contract terms, Rightmove confirmed the letting agent’s departure, alongside its roughly 8% share of listings, from the site on Tuesday.
YouGov PLC (AIM:YOU) shares soared more than 17% on Tuesday after the market research company announced a cost-optimisation plan and an acquisition of an artificial intelligence (AI) company.
The London-listed company has struggled to sustain earnings growth, having issued a profit warning in June, but today’s corporate update has injected some optimism back into the market.
While UK retailers recieved a slight sales boost during July, according to the British Retail Consortium, it's not been as good for Zalando, the online clothing seller.
Its shares are down more than 2.5% despite its sales and underlying earnings increasing, allowing it to reaffirm its full-year guidance.
The European tech sector now contains some good buying opportunities after the 'correction' in recent days, says Deutsche Bank, based on more attractive valuations and an expectation of improved earnings in the second half of the year.
Taking in the sell-off on Tuesday, the Euro STOXX 600 Tech subsector is down 14% since the beginning of July, underperforming the broader STOXX 600 by 9% during the same period, which accounts for over a quarter of the downturn in the broader European equity market, multi-asset strategists at the bank said.
MetalNRG PLC (LSE:MNRG) announced it has raised £244,000 through the issue of convertible loan notes, with proceeds earmarked for specific operational and legal due diligence work on projects that have been identified as potential reverse takeover targets for the company.
The company, in a stock market statement, noted that the CLNs carry a 15% per annum coupon and are convertible into new ordinary shares in the company, at a 20% discount to the prevailing share price.
Elon Musk has claimed his social media company X has “no choice” but to close its San Francisco headquarters in California and move to Texas.
This comes after the Tesla Inc (NASDAQ:TSLA) owner announced on social media that X and his rocket company SpaceX would move from California in retaliation to new state gender identity laws last month.
Lloyds, HSBC, Barclays and NatWest could all be wound down without government intervention in the case they failed, the Bank of England revealed in its "resolvability" check of lenders.
Britain's top eight lenders would be able to 'resolve' or wind down in the face of the collapse without causing the financial system to be destabilised, indicating an improvement in the bank's measures from their actions in the lead-up to the 2008 financial crisis.
Mining giants Rio Tinto, Anglo American and BHP Group were all downgraded after a tool to monitor sector demand flashed a strong 'sell' signal.
The 'restocking indicator' from broker Panmure Gordon reported its weakest signal since mid-2022, with a turnaround after a long bull run.
BAE Systems PLC (LSE:BA.) has secured another US$493 million (£388 million) to supply artillery weapons for the US Army.
This takes the total value of the contract, which relates to M109A7 howitzers, to almost US$3 billion, according to BAE.
It’s time to look at UK domestic earners given the uncertainty in the US, particularly those that benefit from the Labour government's plans, according to analysts at Panmure Liberum.
“We find an attractive investment opportunity in UK domestic earners, especially those companies that benefit from a Labour government,” sai the broker.
Britain's construction sector experienced its fastest growth rate in more than two years last month, according to the latest PMI figures.
The S&P Global UK Construction PMI increased to 55.3 in July from 52.2 in June, remaining above the 50 mark that separates growth from contraction for the fifth consecutive month.
RBC analysts have raised profit forecasts for Barclays PLC (LSE:BARC), suggesting structural hedge income is expected to be higher than previously thought following second-quarter results.
Profit before tax is now expected to sit at £9.3 billion for 2025, against a previous forecast of £8.8 billion, RBC said in a note on Tuesday.
Several major investment apps were temporarily unavailable for small investors during what some veteran market followers said were some of the wildest stock market sessions of their careers, which US regulators said they were examining.
Investment apps owned by Robinhood Markets Inc (NASDAQ:HOOD), Charles Schwab Corp (NYSE:SCHW) and Fidelity International all saw technical issues or shutdowns of their apps on Friday and Monday, along with TD Ameritrade (NASDAQ:AMTD) and Vanguard.
Domino’s Pizza Group’s first-half results sparked confidence in Shore Capital analysts that the franchise’s plans for growth were working.
Analysts from the bank issued a 'buy' rating for Domino’s in a note on Tuesday, highlighting that the franchise appeared to be “making encouraging progress” on growth plans.
Jet engine maker Rolls-Royce Holdings PLC's (LSE:RR.) strong interim results have led to a price target upgrade from JPMorgan as it increased its earnings and cashflow forecasts.
The investment bank raised its target price to 535p from the previous 475p.
Genel Energy PLC (LSE:GENL, OTC:GEGYY)'s chief executive Paul Weir, in today's half-year results, highlighted that cash-generative production continues at the Tawke project, and the company is still seeking new assets to materially diversify its business.
This comes amidst a political impasse which currently restricts Kurdistan crude from being sold in international markets.
Investment manager Polar Capital Holdings PLC's (AIM:POLR) exposure to the currently volatile technology sector has resulted in a share price downgrade from Deutsche Bank.
In a Tuesday broker note, analysts at the bank estimated that Polar Capital delivered £100 million in net inflows in July and has remained inflow positive in early August.
Melrose Industries PLC's (LSE:MRO, OTC:MLSPF) share price slump in the past three days has increasingly become “detached from fundamentals,” according to Citigroup analysts.
Shares in the aerospace manufacturer are down 20% over the past five days, largely contributing to a 15% fall over the year so far.
The directors of Trinity Exploration & Production PLC (AIM:TRIN) today confirmed that they no longer recommend the takeover bid of Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) – and instead intend unanimously to recommend that eligible shareholders vote in favour of the recent rival ‘Lease Operators’ offer.
Albeit, the directors also noted that existing ‘irrevocable undertakings’ in favour of the prior Touchstone offer remain in place until they lapse on 22 August.
Saudi Arabia's state-run oil company promised to pay out $124 billion in dividends this year as cash flows fell in the second quarter but remained eye-poppingly large.
Saudi Aramco declared a $20.3 billion "base dividend" for the second quarter and performance-linked dividend of $10.8 billion to be paid in the third quarter.
Keller Group PLC (LSE:KLR) shares shot up 8% as it reported profits more than doubled in the half year to end June, with cashflow also surging ahead.
Michael Speakman, chief executive, said it had been an outstanding first half for the group, which prepares ground ahead of the start of construction projects, especially in North America.
Airea (AIM:AIEA) fell over 13% on Tuesday morning after warning of an “unforeseen slowdown” in recent months.
The specialist flooring company said the unexpected dip in trading came after a strong start to the year, causing second-quarter sales to fall by 5.6% year-on-year.
British construction materials provider SIG PLC (LSE:SHI) slashed 250 roles in the first half as part of a restructuring effort to wrest the group away from plummeting profitability.
It comes amid the “prolonged challenging market conditions we are currently facing across most of our European businesses”, chief executive Gavin Slark said in an interim trading update.
UK retail sales increased by 0.5% in July compared with 2023 and against a growth of 1.5% a year prior, new data from the British Retail Consortium found.
This was above the 0.3% average rise seen in the last three months, highlighting the help from events like the Euros final and Taylor Swift's tour as well as a spell of warm weather.
genedrive PLC (AIM:GDR) shares fell 10% after it was revealed CEO James Cheek had left the company by mutual agreement.
Dr Gino Miele, previously chief scientific officer, has been appointed as the new CEO.
Shares in Orchard Funding Group PLC fell over 37% to 20p after it revealed that its largest customer had gone into administration.
Orchard, which provides insurance premium finance, had lent around 80,000 customers of Nukula Ltd, which traded under the Insure That brand, a total of £16.7 million as of the end of June.
Travis Perkins (LSE:TPK) has cut its forecasts for the year after interim profits slumped on stalling revenues.
The builders’ merchant said trading conditions remained challenging throughout the first six months of 2024 with prices under pressure and sales volumes lower.
Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) told investors it has successfully deepened the Itumbula West-1 (ITW-1) well by a further 168 meters into the fractured Basement, reaching a new total depth of 1,129 meters measured depth (MD).
The company said it encountered ‘near-continuous helium and hydrogen shows’ while drilling, with levels notably higher than those encountered in previous phases.
Pawnbroker Ramsdens Holdings PLC (AIM:RFX) has increased its full-year profit guidance as “good trading momentum” has continued into the second half of the financial year.
Full-year profit before tax is now expected to be at least £11 million, which would be 9% above the 2023 result and up from prior forecasts of £10.5 million.
Abrdn PLC (LSE:ABDN) shares rose after it reported a slight improvement in profit and progress with its transformation despite fund outflows continuing.
The asset manager and owner of the Interactive Investor investment platform saw net outflows of roughly £1 billion in the first half of 2024, which was an improvement on the £6.5 billion outflow a year ago, as it saw higher gross inflows of £31.3 billion partly offset by net outflows in equities, multi-asset and from insurance partners.
Domino's Pizza Group PLC (LSE:DOM) has unveiled a £20 million share buyback after the men’s Euros helped buoy orders over the second quarter.
This will commence immediately, the master franchise in the UK said in interim results on Tuesday.
South Korean semiconductor manufacturer SK Hynix Inc (NASDAQ:SKHY) has secured $950 million from the US Department of Commerce under the CHIPS and Science Act to build out a semiconductor packaging facility in Indiana.
SK hynix is one of the world's leading manufacturers of DRAM (dynamic random-access memory) and NAND flash memory chips. These memory solutions are widely used in computers, servers, mobile devices, and other electronic equipment.
Saudi Arabia is pumping a further $1.5 billion into electric vehicle upstart Lucid Group Inc (NASDAQ:LCID).
The country's Public Investment Fund (PIF), already its major shareholder, will provide investment to support the introduction of new models, including the anticipated Gravity SUV set for production later this year.