Marks & Spencer Group Plc is emerging out of the pandemic in style. After giving an unexpected profit growth guidance for the year, which sent its shares soaring, it’s now expected to regain its place in the UK benchmark index after a four-year hiatus.
(Bloomberg) — Marks & Spencer Group Plc is emerging out of the pandemic in style. After giving an unexpected profit growth guidance for the year, which sent its shares soaring, it’s now expected to regain its place in the UK benchmark index after a four-year hiatus.
Here’s the key business news from London this morning:
In The City
Marks & Spencer: The retailer whose market capitalization got a boost from a surprise profit forecast last week, is among four companies provisionally earmarked for inclusion in the UK’s FTSE 100 Index when changes are made next month.
- The revival is the result of turnaround measures that got rolling under Chief Executive Officer Stuart Machin.
- The other three companies to be promoted to the blue-chip gauge are Hikma Pharmaceuticals Plc, Dechra Pharmaceuticals Plc and specialty seals-maker Diploma Plc
Reckitt Benckiser Group Plc: The Strepsils maker named Shannon Eisenhardt as chief financial officer, with Jeff Carr set to retire next year. The company, which makes everything from detergent to infant formula, appointed Kris Licht as its CEO in April.
- The consumer goods company, like others, is grappling with falling volumes as shoppers struggle with high inflation. It aims to fuel sales growth with a string of new products
Ithaca Energy Plc: The oil and gas producer expects to lower investments across its portfolio as a result of the UK’s windfall tax on producers. It plans to cancel some projects this year and next, which will hurt the medium-term production outlook.
- The company’s first-half statutory net income fell 90% to $159.6 million, reflecting an impairment linked to the reduction in planned activity and falling gas prices. The London-listed company reaffirmed its production guidance for the full year.
In Westminster
The UK’s Treasury moved as much as £14.3 billion to the Bank of England in July to meet shortfalls on the central bank’s monetary stimulus program. The sum is the single biggest state transfer to the bank ever, showing the impact of high interest rates on the nation’s public finances.
In Case You Missed It
In good news, rocketing wages and slide in property prices brought the biggest improvement in UK housing affordability in more than a decade. On the flip side, higher interest rates mean households now spend more of their incomes on mortgages.
Looking Ahead
Harbour Energy Plc will be among the last remaining explorers to report results Thursday. Earnings aside, watch for progress on the overhaul of its UK operations, including job cuts. The London-listed company has been struggling with a windfall tax the UK government slapped on producers. The gloom might be offset by Prime Minister Rishi Sunak’s recent commitment to granting hundreds of new oil and gas production licenses for the North Sea.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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