Yahoo Finance Trending tickers: Amazon | Metro Bank | Imperial Brands | Ferrexpo
The latest investor updates on stocks that are trending on Thursday
Amazon (AMZN)
Amazon and Microsoft (MSFT) shares are in focus today as the tech firms face an investigation by the competition watchdog.
The communications regulator Ofcom said it alerted the Competition and Markets Authority (CMA) after a market study it conducted found that the two companies dominance could limit competition.
Ofcom said business customers found it difficult to switch cloud provider or use multiple providers due to high fees for transferring data out, as well as technical restrictions.
The CMA is set to conduct an independent investigation to decide whether there is an adverse effect on competition. Amazon Web Services (AWS) has said the company disagrees with Ofcom’s findings.
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"The cloud is the foundation of our digital economy and has transformed the way companies run and grow their businesses," Fergal Farragher, Ofcom’s director responsible for the market study, said.
"From TV production and telecoms networks to AI innovations – all of these things rely on remote computer power that goes unseen. Some UK businesses have told us they’re concerned about it being too difficult to switch or mix and match cloud provider, and it’s not clear that competition is working well.
"So, we’re referring the market to the CMA for further scrutiny, to make sure business customers continue to benefit from cloud services."
Metro Bank (MTRO.L)
Metro Bank lost of quarter of its value on Thursday after it confirmed it is considering refinancing options of a new debt or share sale.
It comes after reports from Sky News said that the lender is looking to urgently raise £600m to shore up its balance sheet, and that it has asked advisers at Morgan Stanley (MS) to work on a deal.
The company, which has 2.7 million customers, said it “is evaluating the merits of a range of options, including a combination of equity issuance, debt issuance and /or refinancing and asset sales."
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It added that it was examining options in regard to the £350m senior non-preferred notes due in October 2025.
"No decision has been made on whether to proceed with any of these options," the statement said.
In a bid to calm investors, bosses added that the bank has been profitable on an underling basis for three consecutive quarters, and that it is meeting minimum regulatory capital requirements. They said Metro Bank is “well positioned for future growth".
Shares in the challenger bank are down 24%, at the time of writing, meaning it has lost around 63% this month alone.
Imperial Brands (IMP.L)
Imperial Brands found favour with investors on Thursday after it announced it had launched a £1.1bn share buyback.
The Winston cigarettes maker said trading for the year was in line with expectations thanks to steady demand, higher prices, and customers opting for tobacco alternatives such as e-cigarettes.
"The extremely cash generative nature of the business is still being underpinned by growth in Imperial's aggregate market share in its five priority market...," Richard Hunter, analyst at Interactive Investor said.
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The news comes just a say after prime minister Rishi Sunak proposed a ban for younger generations from buying cigarettes. The smoking age will potentially rise by one year every year under the crackdown.
“That means a 14-year-old today will never legally be sold a cigarette and that they and their generation can grow up smoke free," the PM said at the Conservative party conference in Manchester.
“If we are to do the right thing for our kids, we must try and stop teenagers taking up cigarettes in the first place,” he added.
It comes as its rival British American Tobacco (BATS.L) has lost more than 24% of its share value.
Chris Beckett, head of equity research at Quilter Cheviot, said: With prohibition of cigarettes on the horizon in the UK, Imperial issued a reassuring financial update for investors ahead of their full year results. Clearly the impact of a cigarette ban will impact on Imperial’s bottom line in the very long-term but it will be a slow burn.
Ferrexpo (FXPO.L)
Ferrexpo rose 4% in London after it said production was up on second half of 2022 in its half-year figures.
The Swiss-based commodity trading and mining company said pellet production was down by 59% year on year to 1.967mn tonnes, but it was up by 57% on the last six months of last year.
Iron-ore pellet production rose 17% in the third quarter, exceeding the board's expectations, while total commercial production rose 15% to 1.35 million tons.
The group’s executive chairman, Lucio Genovese, said that “with the war approaching the middle of its second year, Ukraine continues to demonstrate an incredible resilience”.
"Despite the challenging rail logistics and sea ports capacity available, we have continued to export premium products and service the needs of our premium European customers," it said.
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