the times | Thursday April 28 2022 45MarketsBusiness
B
oeing
disappointed
investors after
it posted a
steeper than
anticipated quarterly
loss and said it was
pausing production of
its twin-aisle 777X jet
until next year (Callum
Jones writes).
The US planemaker
said its new plan for
the 777X, which has
suffered with
certification problems
and weak demand, will
lead to a $1.5 billion hit
in the next quarter.The first deliveries are
now expected to take
place in 2025, five
years later than
initially planned.
The company is also
facing higher supplier
costs and technical
problems linked to its
Air Force One
presidential plane.
Boeing has lost a total
of $1.1 billion so far on
costs associated with a
deal to modify two 747
jumbo jets to serve as
Air Force One.
Dave Calhoun, the
chief executive, said
Boeing “probably
shouldn’t have taken”
risks from the deal,
which was negotiated
with President Trump
in 2018.
Total revenue at418p. LoopUp Group, a conference
call software specialist, was the star of
London’s minnows as it announced it
had inked a two-year contract with
Spain’s Telefonica. The shares more
than doubled yesterday to reach 15p,
up 8p, or 113 per cent, as it also
revealed that it was on track to meet
its target of securing 50 more contract
wins within the 2020 financial year.
Investors also had eyes on Inspecs,
the Bath-based spectacle frame-
maker, as it said numbers in the first
quarter were perkier than they were
in the same period the year before.
The update pushed the shares up 23p,
or 7 per cent, to 350p. On the flip side,
GYG fell into choppy waters after it
told investors it had swung into a loss
last year. Shares in the superyacht
painting and maintenance company
sunk 6p, or 14.1 per cent, to 36½p, as it
reported a pre-tax loss at €7.2 million
versus a profit of €183,000 a year
before as a result of Covid-related
costs and the insolvency of its
shipyard Nobiskrug in April last year.GIUSEPPE CACACE/AFP/GETTY IMAGES)Hard times for software
as Aveva shares tumble
Jessica Newman Market report
A
veva dropped to its lowest
level since January 2019
after the industrial
software group warned of
a slowdown in revenue
growth and slimmer margins for this
financial year as a result of Russian
sanctions and rising costs.
The FTSE 100 company cautioned
that adjusted earnings before interest
and tax would be affected by wage
inflation, as a result of “very
competitive software labour market
conditions”, as well as increased travel
and event costs. The update sent the
shares down 364p, or 15.9 per cent, to
£19.24 yesterday.
Aveva provides software to help
engineers design oil rigs, ships and
factories, and its automation tools are
used by manufacturers to run theirfacilities more efficiently. It merged
with the industrial software business
of Schneider Electric five years ago
and the French group is its largest
shareholder with stake of nearly 60
per cent. The company may be
vulnerable to more pain as reports
suggested that Schneider boss Jean-
Pascal Tricoire may be considering
more asset shuffling following the sale
of its Russian operations.
The miserable geopolitical
landscape failed to dampen investors’
confidence as the FTSE 100 lifted
39.42 points, or 0.5 per cent, to
7,425.61. The more domestically
focused FTSE 250, however, declined
54.35 points, or 0.3 per cent, to
20,437.77. London’s main index was
buoyed by miners as commodity
prices strengthened. Anglo American
extended its gains by a further 195p,
or 5.9 per cent, to £35.07; Antofagasta
rose 76p, or 5.2 per cent, to £15.45; and
Rio Tinto added 222p, or 4.1 per cent,
to £56.75. In the mid-caps, shares in
John Wood Group jumped 10p, or4.9 per cent, to 213p. Bargain hunters
drove HSBC higher, lifting the shares
12½p, or 2.6 per cent, to 486½p after
they dropped on Tuesday when the
bank reported a 28 per cent fall in
profit in the first quarter.
Retail stocks came under more
selling pressure as fresh data showed
that shoppers cut back on spending
this month. It led JD Sports to slip
3½p, or 2.6 per cent, to 130p; while
Ocado’s shares fell by another 20¾p,
or 2.2 per cent, to 929½p; and Marks
& Spencer fell 4¾p, or 3.4 per cent, to
137p. WH Smith, which yesterday
warned of rising shipping costs due to
the war in Ukraine, stumbled 56½p, or
3.7 per cent, to £14.55.
Beazley swept towards the top of
the mid-cap index after analysts at
UBS tipped their clients to buy the
shares because the stock was trading
on price-to-earnings multiples, which
they note, have not been seen for
close to a decade. The upgrade sent
shares in the Lloyd’s of London
insurer up 18¾p, or 4.7 per cent, toBP set for £50m Serica profit
natural resourcesT
he sale of its
5 per cent stake
in the North Sea
producer Serica
Energy will bring BP
a profit of about
£50 million (Emily
Gosden writes).
The oil giant took
13.5 million shares in
Serica as part of a
deal completed in
2015 to sell BP’s
18 per cent stake in
the North Erskine
gasfield in the Central
North Sea.
On the day the
shares began trading
they closed at 5½p,
valuing BP’s stake at
£756,000.
Serica has emerged
as one of the big
winners from theenergy crisis, with
surging gas prices
propelling its shares
to record highs above
418p this month. They
closed last night at
393p, valuing BP’s
stake at £53 million.
Jefferies announced
after markets closedlast night that BP was
selling its entire stake
through a secondary
placing, co-ordinated
by the bank. It said
that the price would
be determined “by
way of an accelerated
bookbuilding”, in
which shares are
typically sold at a
discount.
A spokesman for
BP said it was “the
right time” to sell the
stake.
Serica Energy
reported a pre-tax
profit of £135.1 million
last year, up from only
£12.5 million in 2020.
It produced the
equivalent of 22,200
barrels of oil per day
last year.BP received its shares
in Serica in exchange
for a stake in a gasfieldWall Street report
Indices rebounded after Tuesday’s
sharp sell-off as strong earnings
from Microsoft and Visa lifted
investor confidence dented by
growth concerns. The Dow Jones
industrial average rose 61.75 points,
or 0.2 per cent, to 33,301.93.Company Change
Anglo American Rebound in metal prices 5.9%
Antofagasta Exposed to commodity price rises 5.2%
John Wood Group Rising oil prices 4.9%
Beazley Analyst upgrade 4.7%
Blackrock World Mining Trust Pulled higher by rise in precious metal miners 4.2%
Trustpilot Group Technology stocks out of favour -5.2%
PureTech Health Jefferies slashes price target -5.8%
Baltic Classifieds Group Extends losses -7.0%
discoverIE Group Stock under continued selling pressure -8.1%
Aveva Group Profit warning -15.9%The day’s biggest movers
Boeing fell 8 per cent
to $13.99 billion in the
three months to
March. Net losses
widened from $561
million to $1.24 billion.
Shares in the group
closed down 7.5 per
cent, or $12.58, at
$154.46 in New York.
Boeing, valued at $91
billion and based in
Chicago, makes
airliners, military
aircraft, missiles and
space tech.
“While the first
quarter of 2022
brought challenges for
our world, industry and
business, I am proud of
our team and the
steady progress we’re
making toward our key
commitments,”
Calhoun, 65, said.Boeing takes
a dive amid
steep losses
Exchange rates
Bid Change
Australia $ 1.760
Canada $ 1.607 -0.01
Denmark Kr 8.847 +0.03
Euro ¤ 1.189
Hong Kong $ 9.811 -0.09
Hungary 449.777 +3.89
Indonesia 18034.037 -153.40
Israel Shk 4.149 -0.01
Japan Yen 160.464 -0.03
New Zealand $ 1.915
Norway Kr 11.721 +0.07
Poland 5.593 +0.04
Russia 92.534 -1.71
S Africa Rd 19.959 -0.02
Sweden Kr 12.336 -0.04
Switzerland Fr 1.213
Turkey Lira 18.546 -0.13
USA $ 1.250 -0.01
Rates supplied by MorningstarDollar rates
Australia 1.3993-1.3993
Canada 1.2805-1.2805
Denmark 7.0426-7.0431
Euro 0.9465-0.9466
Hong Kong 7.8460-7.8463
Japan 128.38-128.39
Malaysia 4.3575-4.3625
Norway 9.3190-9.3240
Singapore 1.3785-1.3795
Sweden 9.8146-9.8171
Switzerland 0.9686-0.9690Other Sterling
Argentina peso 144.58-144.59
Australia dollar 1.7591-1.7593
Bahrain dinar 0.4700-0.4771
Brazil real 6.2555-6.2593
Euro 1.1899-1.1900
Hong Kong dollar 9.8638-9.8648
India rupee 96.150-96.183
Indonesia rupiah 18140-18140
Kuwait dinar KD 0.3834-0.3858
Malaysia ringgit 5.4672-5.4734
New Zealand dollar 1.9162-1.9166
Singapore dollar 1.7335-1.7338
S Africa rand 20.021-20.032
U A E dirham 4.6053-4.6078Money rates %
Base Rates Clearing Banks 0.75 ECB Refi -0.50 US Fed Fd 0.00-0.25
Halifax Mortgage Rate 3.59Treasury Bills (Dis) Buy: 1 mth 0.330; 3 mth 0.799. Sell: 1 mth 0.200; 3 mth 0.5801 mth 2 mth 3 mth 6 mth 12 mth
Interbank Rates 0.9277 0.0000 1.2065 1.6532 0.0000
Eurodollar Deps 0.83-1.08 1.00-1.25 1.23-1.48 1.68-1.93 2.53-2.60Mkt Rates for Range Close 1 month 3 month
Copenhagen 8.7898-8.8688 8.8537-8.8550 122ds 387ds
Euro 1.1920-1.1816 1.1900-1.1899 12pr 38pr
Montreal 1.6063-1.6169 1.6097-1.6099 0pr 10pr
New York 1.2502-1.2600 1.2571-1.2572 1ds 3pr
Oslo 11.589-11.757 11.714-11.722 6ds 28ds
Stockholm 12.324-12.393 12.339-12.342 118ds 333ds
Tokyo 160.08-161.37 161.37-161.39 16ds 60ds
Zurich 1.2101-1.2190 1.2178-1.2179 19ds 59ds
Premium = pr Discount = dsSterling spot and forward rates
Gold/Precious
London Grain Futures metals (US dollars per ounce)
LIFFE Wheat (close £/t)
May 332.00 Jul unq Nov 296.60
Jan unq Mar unq Volume: 655
London Metal Exchange
(Official)
Cash 3mth Dec 22
Copper Gde A ($/tonne)
9905.0-9910.0 9890.0-9895.0 9865.0-9875.0
Lead ($/tonne)
2318.0-2320.0 2316.0-2318.0 2263.0-2268.0
Zinc Spec Hi Gde ($/tonne)
4318.5-4319.5 4249.0-4251.0 3653.0-3658.0
Alum Hi Gde ($/tonne)
3099.0-3100.0 3115.0-3117.0 2998.0-3003.0
Nickel ($/tonne)
33250.0-33300.0 33200.0-33205.0 33195.0-33245.0
Tin ($/tonne) 15mth
40770.0-40790.0 40240.0-40260.0 39545.0-39595.0European money
deposits %
Currency
1mth 3mth 6mth 12mth
Dollar
0.13 0.20 0.29 0.55
Sterling
0.93 1.21 1.65 0.81
Euro
0.10 0.15 0.20 0.50Data as shown is
for information
purposes only. No offer is made by
Morningstar or this publicationBecause of a technical issue, the gold fix
prices are from Tuesday.
Bullion: Open $1906.61
Close $1888.14-1888.41 High $1906.61
Low $1882.38
AM $1903.40 PM $1904.60
Krugerrand $1869.00-1970.00 (£1486.65-1566.99)
Platinum $924.00 (£734.97)
Silver $23.45 (£18.65)
Palladium $2245.00 (£1785.73)