Investors will have to prepare for a complete overhaul of economic, social and governance (ESG) rules by the US government in the case of Donald Trump winning the election.
That’s according to Panmure Liberum analysts, which highlighted a second term for Trump would see green loans and investments planned under Biden’s administration up in the air.
Global advertising giant WPP PLC (LSE:WPP)’s mediocre interim results came as little surprise to City analysts on Wednesday.
Year-on-year revenues barely budged amid lower contracting marketing spend from WPP’s blue-chip client base and while operating profit improved by 38%, this came at the expense of considerable workforce layoffs.
Legal & General Group PLC (LSE:LGEN) beat profit expectations for the first half of the year but analysts said overall the numbers may disappoint some due to a large negative investment variance and low new business margins.
Operating metrics, including profit, were better than the City's consensus forecasts, however, investment variances were a "large negative", said UBS, with £417 million within the core businesses and £187 million in non-core.
Glencore PLC (LSE:GLEN)'s decision to retain its coal assets was no surprise to broker Panmure Liberum, given its cash generation and plans to wind it down.
“The pressures of ESG have evolved and investors approve of its plans to wind down the coal business responsibly,” said the broker.
Fares are coming under pressure across the airline sector, suggests Deutsche Bank, echoing comments for the carriers themselves in their recent updates.
September 60-day out fares advertised in Jul-24 for travel in Sep-24 are down 6% year-on-year versus minus 2% in the previous month.
Shares in IG Group Holdings Plc (LSE:IGG) rose 2% following a bullish note from UBS research report highlighting the trading services firm's growth prospects under new CEO Breon Corcoran.
UBS initiated coverage with a 'buy' rating and a 1,150p price target that offered 30% 'upside potential' from current levels.
AJ Bell PLC (LSE:AJB) has been slapped with a rating cut by UBS, which sees the wealth platform continuing to do well but this prospect is in the share price.
The FTSE 250-listed group should grow its market share as fund flow begins to recover while Consumer Duty concerns have eased as the Financial Conduct Authority focuses on interest income on client cash.
Ozempic maker Novo Nordisk's (NYSE:NVO) weight loss drug sales were below expectations in the second quarter but this is not a significant concern, analysts said.
Sales of Wegovy, the brand for semaglutide approved as a weight loss treatment, came in 14% below consensus, while sales of Ozempic, which is approved in the US for diabetes, were 3% lower than consensus forecasts.
A broker has raised its price target for shares in Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) in the wake of last month's £152.5 million fundraiser - cash that will be deployed on value-enhancing acquisition opportunities.
Reiterating its 'buy' advice, Panmure Liberum raises its valuation to 125p a share from 120p, noting: "Sirius will be the first to point out there is a lot of hard work ahead to deploy the new capital raised and deliver asset management-driven progression of the acquired rental income.
Abrdn PLC (LSE:ABDN) needs a more radical shake-up than management is currently proposing, according to Deutsche Bank.
To start, Abrdn should consider disposing of the asset management division, said the bank, which might start to realise the significant gap between the market price and the sum-of-the-parts value.
Rolls-Royce Holdings PLC (LSE:RR.) is on course to meet profit guidance two years earlier than guidance suggests, UBS analysts anticipate.
Alongside this, the FTSE 100-listed engine manufacturer could surpass free cash flow guidance earlier than expected, the bank said in a note on Wednesday.
Hammerson PLC (LSE:HMSO) has been granted an upgrade as Great Portland Estates (LSE:GPOR) was bumped down by Stifel analysts in a real estate rating reshuffle.
Stifel dubbed Hammerson’s decision to sell its stake in luxury shopping centre operator Value Retail as “transformative” in a sector note on Wednesday, with the £600 million proceeds set to help slash debt.