BOE's Cunliffe Says Digital Pound Not Guaranteed -2-

1044 GMT - Travis Perkins shares slipped in early trading Tuesday, reflecting its cautious outlook in its latest results, AJ Bell says. The building-materials retailer says it is preparing for "more challenged" private domestic new-build and repair, maintenance and improvement markets, AJ Bell investment director Russ Mould says in a market comment. "The cracks in the property sector are becoming more like the ones you see with subsidence than hairline gaps in plaster," Mould says. "Sellers are slashing asking prices, transaction volumes have fallen on a seasonally adjusted basis, and companies serving the U.K. property market are bracing themselves for a tougher climate this year." Shares are down 2.7% at 1,017.5 pence. ([e-mail])

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St James's Place FY Results Top Expectations

1052 GMT - St. James's Place full-year results topped expectations, Panmure Gordon says. The investment manager's results were ahead of estimates and it modestly increased the dividend, Panmure says. "With more funds moving from gestation to earning, there is an inherent tailwind to business development and with cost control now central to the business, that will drive profit development," Panmure analyst Rae Maile says in a note, reiterating the brokerage's buy recommendation and 1950 pence price target. Shares top the FTSE 100 risers, up 3% at 1278p. ([e-mail])

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Ocado's Performance to Remain Under Pressure Until Inflation Eases

1103 GMT - Ocado's performance remains under pressure as the group faces challenges to maintain its market position, IG Group Chief Market Analyst Chris Beauchamp says in a note. The online grocer and retail-technology specialist's premium offering is facing volumes that are failing to rise along with customer numbers, while supermarket prices continue to increase, he says. "All supermarkets are watching costs closely, but Ocado finds itself at the sharp end and is going to struggle over the next six months and beyond given that inflation stubbornly refuses to come back down," Beauchamp adds. Shares fall to a four-month low. ([e-mail])

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Abrdn Gains After FY Results Offer Profit, Cost Cheer

1114 GMT - Abrdn shares are among the biggest FTSE 100 risers, up 2% after the fund manager reported better-than-expected annual results. The company's second-half adjusted pretax profit was 19% above market expectations, Citigroup says. While there was limited detail in the outlook, net cost savings are now expected in 2023 prior to any non-core disposals and while no buyback has been set out, Abrdn said it intends in 2023 to return an amount similar to the GBP600 million of capital it paid out in 2022, Citi says. "Flow miss and weaker investment performance are disappointing, although we expect investors will be pleased by better profitability and cost [performance] in 2023," Citi analysts say in a note. ([e-mail])

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Croda International Looks Solid Despite Hurdles

1152 GMT - Croda International's underlying prospects look positive despite a negative outlook and downbeat trading in part of the chemical company's business, Citigroup says. Croda's full-year results were slightly ahead of consensus despite a worse-than-expected performance in its consumer-care activities, with volumes slowing due to destocking, particularly in North America, Citi says. "The 2023 outlook is sequentially negative, with consensus EBIT at GBP473 million, but may see incremental upside with an improvement in consumer care ahead of expectations," Citi analysts say in a note, reiterating their neutral recommendation. "We remain positive on the underlying business and expect organic investment to yield results, in time." Shares fall 4%. ([e-mail])

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Sticky Inflation Likely to Increase Rates Market Volatility

1215 GMT - Persistently high core inflation in the euro area and the U.K. means that the implied rate cuts priced in by markets are unlikely to be realized in the near-term and rate markets volatility is expected to rise, says RBC Capital Markets Global Macro Strategist Peter Schaffrik in an online presentation. "Stickier inflation means that the rates market might be a bit more volatile than we would have expected," he says. Nonetheless, riskier assets like equities and credit could perform well due to the strong economy, Schaffrik says. ([e-mail])

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Intertek Shares Drop After Mixed FY Results

1224 GMT - Intertek Group's shares fall 4% after a mixed set of annual results and 2023 outlook from the product-testing and inspection firm. While full-year adjusted operating profit broadly matched market expectations, margins in the company's product and trade activities fell short of consensus forecasts, but exceeded estimates in its resources business, Citi says. The company predicted good organic growth in products and trade in 2023 and robust growth in resources, Citi says. "The 'good' organic growth progression in products may disappoint the market slightly," Citi analyst Arthur Truslove says in a note. ([e-mail])

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European Stocks Rise Ahead of Likely Higher US Open

1233 GMT - European stocks mostly rise after mixed Asia trading and ahead of an expected higher U.S. open. The Stoxx Europe 600 and CAC 40 gain 0.1% and the DAX advances 0.2%, though the FTSE 100 drops 0.4%. Brent crude increases 1.3% to $83.13 a barrel. Australian, mainland China and Japanese markets rose, but Hong Kong stocks fell. IG futures data show the Dow opening at 32981, versus Monday's close of 32889. "In the U.S., it's time for consumer confidence from the Conference Board," Danske Bank analysts write. "Last month it improved in line with other job indicators and the February number may give the first hint of whether the improvement was due to mild weather or not. We also get U.S. house prices."([e-mail])

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AO World Third Guidance Upgrade Lays out Path for Mid-Term Goals

1246 GMT - AO World on Tuesday upgraded its guidance for the third time since November as the group steps forward to meet its medium-term targets and change the negative sentiment toward the stock, Shore Capital analysts Bradley Hughes and Clive Black say in a note as shares rise 30%. The online electrical-goods retailer is making progress with a rationalized cost base and management refocus on U.K. earnings growth following the disposal of its German business, they say. "We look forward to April, where we will get closure on the quality of these guidance upgrades and what this means for cash burn," the analysts say. ([e-mail])

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Shell's Returns Appeal, Oil Prices Underpin Outlook

1342 GMT - Shell has attractive shareholder returns and oil prices continue to support its mid-term outlook, AlphaValue says, upgrading the oil major to add from reduce. Despite increased capital spending, the company should be able to achieve committed shareholder returns thanks to a strong outlook on operating cash flow, AlphaValue says. Shell is expected to capitalize, in particular, on its large liquefied natural gas portfolio as the largest global gas trader, with medium-term demand prospects looking robust, the brokerage says. "Shell remains one of the most attractive options among European integrated oil [stocks]," AlphaValue analyst Elif Binici says in a note. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

02-28-23 0920ET