Belluscura shares surged in afternoon trading on Tuesday as the portable oxygen concentrator company released a flurry of announcements related to bolstering its manufacturing capabilities.

Belluscura has recently unveiled two substantial developments in the distribution and sales of their portable oxygen concentrators which could add up to $70m in revenue for Belluscura.

This was increased to $85m today after Belluscura announced further orders for their DISCOV-R™ portable oxygen concentrators. The company said orders now sat around $30m.

Belluscura has inked a royalty agreement with Chinese partners that could be worth around $55m over ten years.

Today’s series of announcements revealed a funding package totalling in the region of £8m to be allocated to scaling up the company’s manufacturing and sales operations in light of a step change in order demand.

The £8m funding package will be beneficial for shareholders as it avoids a large discounted placing that would erode shareholder value through dilution.

The package is comprised of three elements; the acquisition of TMT Acquisitions PLC satisfied by new shares in Belluscura, a £0.6m equity placing at 32p, and the issuing of £2.7m in 10% convertible loan notes.

TMT Acquisitions has £4.7m in cash which Belluscura will receive through the acquisition of the company in return for newly issued Belluscura shares. The price paid by Belluscura represents a 24.7% premium to TMT’s most recent closing price. TMT has no trading activities and the board will step down on the completion of the deal.

Nigel Wray, an existing Belluscura shareholder, will participate in the convertible loan note issue.

Belluscura shares jumped 20% to 36p as of 2.41pm in London.

Tekcapital, a major Belluscura shareholder, saw their shares tick higher in the immediate reaction to the news.

The FTSE 100 was feeling the pressure of higher bond yields on Tuesday as US 10-year treasury yields touched 4.75% amid concerns about the trajectory of interest rates.

The latest bout of concern was sparked by a raft of strong US economic data suggesting the world’s largest economy is taking higher rates in its stride.

“The hangover from strong economic data out in the US is still being felt, with the headache increasing about the likelihood of high interest rates setting in rattling nerves. Better than expected manufacturing indicating a more buoyant US economy is not being taken as good news, but a sign that the bitter central bank medicine will have to keep being administered to bring down inflation to target,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

Those hoping interest rates had peaked may be disappointed if this trend continues and inflation remains elevated. The ongoing concerns about interest rates are weighing on markets that are starting to show signs of monetary policy fatigue.

“Stubbornly high US government bond yields are making life harder for equities to press ahead. The US Treasury yield exceeded 4.7% overnight as investors took the view that the US economy is in a decent and resilient shape,” said Russ Mould, investment director at AJ Bell.

“While a robust economy would be positive, it theoretically lowers the chances of the Federal Reserve making interest rate cuts in the near-term or at least fewer cuts than previously expected.”

The FTSE 100 was down 0.3% to 7,488 at the time of writing.

“A risk-off sentiment is growing, and the FTSE 100 is finding it hard to regain its mojo,” Streeter concluded.

In terms of FTSE 100 movers, consumer-facing and highly cyclical sectors received the brunt of the selling on Tuesday. Miners were weaker and were Burberry and JD Sports.

Ocado’s free fall continued as hopes of a bid from Amazon becomes a distant memory. Ocado shares were down 4.5% and were the biggest loser on Tuesday.

There was a distinct risk-off rotation in FTSE 100 stocks with defensive names including GSK, Unilever and Pearson in favour.

On Tuesday, Aurrigo International, a leading international provider of transport technology, announced a partnership with IAG for the deployment and demonstration of Aurrigo’s autonomous aviation transportation solutions within the UK. 

Aurrigo International PLC shares were up 14% to 169p at the time of writing.

David Keene, the CEO of Aurrigo, commented on the partnership:

“This Partnership with one of the world’s largest airline groups is a great endorsement of the capabilities of our technology and the potential of automation to improve efficiencies and solve the challenges facing modern aviation”

In the statement released on Tuesday, Aurrigo states that after the simulation and evaluation phases, the company’s Board expects to deploy the following autonomous service at UK’s airports: Auto-DollyTug, which is a zero-emission vehicle used for baggage and cargo transportation, Auto-Cargo freight vehicle, and Auto-Sim aviation operations simulation software, which is a 3D tool used to visualise and optimize airports-based operations. 

“IAG is dedicated to supporting innovation which can transform aviation efficiencies and improve ground operations. Automation at airports is a key focus for us and having assessed our options we are pleased to be working with Aurrigo,” said Jorge Saco, Chief Information, Procurement, Services, and Innovation Officer at IAG.

“We first trialed the prototype Auto-Dolly in 2019 and after revisiting it post-Covid, we were impressed by how far their vehicle capabilities have progressed. We look forward to this technology helping to build our leadership position in aviation automation”.

Aurrigo’s new partnership is expected to follow a similar phasing plan to Aurrigo’s ongoing partnership with Singapore-based Changi Airport Group (CAG).

On Tuesday, RWS Holdings, a language-focused technology company, announced the acquisition of South Africa-based language services provider STC Comms Language Specialists Proprietary Limited.

ST Communications provides language services in 40+ African languages- some of which are rare tribal languages – allowing RWS to expand its services and enable clients to reach new African markets. 

RWS Holdings shares were flat at 242p at the time of writing.

The acquisition was made from RWS existing cash resources and compliments its long-term plan to grow through acquisitions.

According to the Chief Executive Officer of RWS, Ian El-Mokadem: 

“Africa is a continent that is of long-term strategic importance to our clients and, as one of the most linguistically diverse regions in the world, it presents a significant challenge for language services. We have partnered with ST Communications for many years and this acquisition supports our long-term strategy to continually invest and pioneer in new capabilities and will enable our clients to deepen their relationships in fast-growing African markets.”

Boohoo’s sales declined more than expected in the last six months due to targeting more profitable business, the online fashion retailer said on Tuesday.

Revenues fell 17% in the six months to August and the company made sweeping downward revisions to their full-year projections.

The company now expects full-year sales to drop 12% to 17%, down from previous guidance of a 10% to 15% decline.

Boohoo shares were down around 9% after releasing their interim results on Thursday.

Boohoo said it successfully targeted more profitable sales in its budget labels, leading to steeper revenue drops there. Sales at its core brands fell 10%, in line with expectations.

The strategy boosted profitability, with adjusted EBITDA margin up 30 basis points to 4.3%. Boohoo reiterated guidance for full-year margins of 4% to 4.5%.

“The group’s focus remains on executing its back to growth strategy through disciplined investments across product, price and proposition,” it said.

Boohoo is rebuilding after a supply chain scandal in 2020 dented its reputation. It has invested in automation, refreshed ranges and cut costs.

The board remains confident in getting back to growth in the medium term and generating a 6-8% adjusted EBITDA margin.

John Lyttle, Group CEO, commented:

“Over the first half we have made substantial progress across key projects and initiatives, including the launch of our US distribution centre. We have seen significant improvements in sourcing lead times and invested in pricing to reinforce our value credentials. We have identified more than £125 million of annualised cost savings that support our investment programme. Our confidence in the medium-term prospects for the Group remains unchanged as we execute on our key priorities where we see a clear path to improved profitability and getting back to growth.”

The FTSE 100 was weaker on Monday as the first trading session of October reflected nagging concerns about interest rates remaining higher for longer.

The FTSE 100 was down 0.79% to 7,547 at the time of writing.

“It’s been a testing time for markets as investors weigh up the likelihood of sticky inflation and interest rates remaining higher for longer. There is a balancing act for central banks – they want to fight inflation but equally they want to avoid being too aggressive with rate hikes and putting their economy into recession,” said AJ Bell’s Russ Mould.

Mould continued to explain that although central banks have suggested rates may stay at elevated levels for a prolonged period, policymakers will continue to base their decisions on economic data and upcoming interest rate decisions will be dictated by the health of the underlying economy.

“Data has been central to their decision-making and this week will see the release of some important figures shedding light on the state of one key economy.”

Persistent interest rate fears have hit some sectors more than others in 2023 and the most interest rate-sensitive sectors were again leading the declines on Monday. Housebuilders and construction companies were among the heaviest hit.

There were few FTSE 100 gainers on Monday and the selling was broad and indiscriminate. Diploma was the FTSE 100’s top faller, down 3.6%, while Beazley shed 3.2%.

There were gains for United Utilities as the company joined Severn Trent and Pennon Group in unveiling five-years plans to improve their infrastructure.