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UK market update – GDP growth slows in July, Cineworld reaches Regal agreement

Published 10/09/2021, 08:04
Updated 10/09/2021, 08:06
© Reuters
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By Samuel Indyk

Investing.com – At 08:04BST, the FTSE 100 is trading higher by 0.2% at 7,039. The midcap FTSE 250 is trading higher by 0.2% at 23,840.

In FX markets, GBP/USD is trading at 1.3860, EUR/GBP is trading at 0.8536. The US Dollar Index is flat.

Today’s calendar highlights include the Russian Central Bank interest rate decision, US PPI, US wholesale inventories, Canadian labour market data, and the Eurogroup meeting.

Data

UK GDP increased 0.1% MoM in July, the weakest growth rate since January. Expectations were for the economy to have grown 0.6%. Industrial production grew 1.2% versus expectations of 0.4%. Manufacturing production was unchanged versus 0.1% increase expected. Construction output declined 1.6% versus expectations of an increase of 0.5%. The UK trade deficit was larger than expected at £12.71 billion.

Stocks

Cineworld (LON:CINE) - Reached an agreement with dissenting shareholders of Regal Entertainment Group with respect to the payment of judgment of their claim. Under this agreement, the Company will now pay $170 million of the Judgment to the dissenting shareholders and $92 million will be placed into an escrow account to be available to Cineworld as additional liquidity under certain circumstance.

Royal Dutch Shell (LON:RDSa) - Declared a force majeure on numerous contracts that they anticipate will be impacted by the damage from Hurricane Ida as production struggles to come back online.

PureTech Health (LON:PRTC) - The company's Vor Biopharma unit announces VOR33 has been granted US FDA Fast Track Designation for Acute Myeloid Leukaemia.

Spectris (LON:SXS) - Completing the final tranche of its share buyback programme for a maximum consideration of up to £200 million, announced at its full year results in February.

Gresham House  (LON:GHE) - Intends to purchase the Venture Capital Trust business of Mobeus Equity Partners for initial consideration of £24.0 million, with further consideration up to £12.1 million. Intends to raise proceeds of £40 million through a placing to fund the acquisition and AUM growth development projects.

Purplebricks (LON:PURP) - Upgraded to Neutral from Sell at UBS.

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