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London Markets: Tate & Lyle shares slip as fate of sweetener unit is still unknown, while pound rises on rate-hike view

0

Sometimes no news is bad news.

Tate & Lyle, alongside the release of its earnings, didn’t announce a conclusion to the fate of the artificial sweetener-making primary products division it put up for sale last month. Tate & Lyle
TATE,
-5.45%

shares fell 5%.

“We are exploring the potential to separate our Food & Beverage Solutions and Primary Products businesses through the sale of a controlling stake in Primary Products to a long-term financial partner,” the company said, largely reiterating a comment made in late April. It said discussions with potential new partners were ongoing and it has already paid £19 million ($27 million) for work on the potential breakup.

The company reported a 12% rise in adjusted earnings per share in the year ending March 31, with revenue edging up 1%, while it expects current-year earnings per share to fall, due to significantly lower profits in its commodities division and a rising adjusted effective tax rate.

The pound
GBPUSD,
+0.35%

rose after bullish comments from Bank of England voting member Gertjan Vlieghe, who said a rate rise could be appropriate soon after the first quarter of next year, when the central bank would have a clear view of the post-furlough unemployment and wage dynamics.

The FTSE 100
UKX,
-0.18%

slipped 0.2%, weighed down by energy producers Royal Dutch Shell
RDSB,
-2.01%

and BP
BP,
-1.66%
.

Johnson Matthey
JMAT,
-4.00%

fell 4%, as the catalytic-converter maker reported in-line results for the year ending March and said operating performance would improve this year.

Engine maker Rolls-Royce
RR,
+4.89%

saw a 5% jump, after plane maker Airbus
AIR,
+9.47%

announced it was increasing jet production.

Read: Airbus ramps up A320 jet production as aerospace giant signals recovery

: HSBC pulls out of U.S. retail banking, as it continues to pivot to Asia

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