Risk of Correction in BOE Rate

Oct 30, 2023

Risk of Correction in BOE Rate-Rise Bets Could Hit Sterling

1040 GMT - Sterling looks vulnerable to a potential repricing of excessive expectations of interest-rate rises by the Bank of England, Commerzbank says. The market expects the BOE to raise rates by 25 basis points at the next four meetings following last week's higher-than-expected U.K. inflation data for April, Commerzbank currency analyst You-Na Park-Heger says in a note. Such expectations look "exaggerated" and data will sooner or later point to falling price pressures and a further weakening of the economy, she says. "We therefore see the risk of a correction of the rate expectations and thus downside risks for sterling." GBP/USD falls 0.4% to 1.2358 but EUR/GBP drops 0.1% to 0.8637 after earlier hitting a five-and-a-half-month low of 0.8625, according to FactSet. ([email protected])

COMPANIES NEWS:

Prudential's CFO James Turner Resigns; Ben Bulmer Named as Replacement

Prudential on Wednesday said its Chief Financial Officer James Turner is stepping down and that it has named Ben Bulmer to the role.

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Abrdn Sells Remaining HDFC Life Shares for GBP198 Mln

Abrdn said Wednesday that the company has sold all of its shares held in HDFC Life Insurance Company for around 198 million pounds ($245.8 million).

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B&M European Value Retail FY 2023 Profit Fell; Sees FY 2024 Earnings Rising

B&M European Value Retail said Wednesday that its fiscal 2023 pretax profit fell on post-pandemic normalization and higher costs, though revenue rose, and it sees full-year fiscal 2024 earnings increasing.

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Shoe Zone to Buyback GBP2.25 Mln Worth of Shares

Shoe Zone said Wednesday that it plans to buy back up to 2.25 million pounds ($2.8 million) worth of its shares by June 28.

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WH Smith Raises FY 2023 Guidance On March-May Revenue Jump

WH Smith said Wednesday that it has lifted its full-year guidance as a results of a strong revenue performance in the 13-week period to May 27.

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Bloomsbury Publishing FY 2023 Profit, Revenue Beat Expectations

Bloomsbury Publishing said Wednesday that fiscal 2023 pretax profit and revenue rose ahead of its recently upgraded expectations, as the consumer and non-consumer divisions performed strongly.

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Bodycote CEO Harris to Step Down in 2024; Four-Month Revenue Up

Bodycote said Wednesday that Chief Executive Officer Stephen Harris will retire next year and that revenue rose for the four-month period ended April 30 as it backed its guidance for the year.

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Yu Group Sees 2023 Revenue, Profit Substantially Beating Market Views

Yu Group said Wednesday that it has experienced strong business momentum in 2023 to date, with revenue, profit and cash generation all showing strong growth, and that it expects to substantially exceed market views for the full year.

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Premier Miton Group 1H Pretax Profit Drops on Lower Assets Managed

Premier Miton Group on Wednesday reported a drop in pretax profit for the first half of fiscal 2023 as it managed lower levels of assets on average during the period.

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DP Eurasia Sales Rise on Continuing Demand, Backs Full-Year Guidance

DP Eurasia said Wednesday that its group system sales rose 23% in the four-month period to April 30, mainly on strong sales performance in Turkey, and that it is backing its full-year guidance.

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Norman Broadbent 2022 Pretax Loss Narrowed, Growth Continued Into This Year

Norman Broadbent PLC said Wednesday that its 2022 pretax loss narrowed as revenue and net fee income rose, and that its accelerated growth continued into the first quarter of 2023.

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Impax Asset Management 1H Pretax Profit Fell on Higher Costs

Impax Asset Management Group on Wednesday posted a fall in pretax profit for the first half of fiscal 2023 as it booked higher operating costs and finance expenses while its revenue for the period was stable.

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Anglo American Finance Director to Retire; Company to Consolidate Production Units

Anglo American said Wednesday that it is reorganizing its senior management team, with Finance Director Stephen Pearce planning to retire this year and the productions businesses set to be consolidated.

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Aferian Agrees to Shareholder Loan of Up to GBP3.25 Mln

Aferian said Wednesday that it has agreed to a shareholder loan facility of up to 3.25 million pounds ($4 million) and that this provides it with additional headroom in respect of the covenants in its existing bank facility.

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NetScientific 2022 Losses Widened, Portfolio Valuation Rose

NetScientific on Wednesday said its losses widened over 2022 though its portfolio valuation rose 35% over the year, and that it has appointed a new nonexecutive chair.

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Bakkavor 1Q Revenue Rose; Sees 2023 Profit at Upper End of Market Views

Bakkavor said Wednesday that first-quarter revenue rose in line with its expectations, and that it sees adjusted operating profit at the upper end of the range of market expectations.

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Critical Metals Sees Sales From Molulu Project in June; Raises GBP600,000 in Share Placement

Critical Metals said Wednesday that it is expecting to start selling copper from its Molulu asset in the Congo in June, and that it has raised 600,000 pounds ($744,780) in a share placing.

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Noventiq Reports 4Q, Fiscal Year Gross Profit Rise

Noventiq Holding said Wednesday that gross profit in the fourth quarter and in fiscal 2023 rose, and that it had exceeded all the key elements stated in the business outlook for the full year provided on Feb. 28.

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Challenger Energy Shares Rise on Start of Uruguay License Farm-Out Process

Challenger Energy Group shares rose Wednesday after it said it has begun a farm-out process of its Area Off-1 license offshore Uruguay, with strong initial indications of interest from multiple major oil companies.

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Taylor Maritime Names Henry Strutt as Chair

Taylor Maritime Investments on Wednesday appointed Henry Strutt as its new nonexecutive chair effective on June 1.

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Alkemy Capital Shares Rise on GBP1.35 Mln Fundraise for Project Advancement

Alkemy Capital Investments shares rose Wednesday after it said it has completed a 1.35 million pound ($1.7 million) fundraising to be used to advance company projects and provide working capital for the next 12 months.

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Goldplat Appoints COO; Gold Export Restarted in Ghana

Goldplat said Wednesday that it has appointed a chief operation officer to improve current operations, and that gold export from Ghana has restarted following a license renewal.

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Crimson Tide Names Shaun Mullen Finance Director as Peter Hurter Steps Down

Crimson Tide on Wednesday said its Finance Director Peter Hurter is leaving the company to pursue other career opportunities and will be replaced by Shaun Mullen.

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Oncimmune Shares Fall on 1H Pretax Loss

Shares in Oncimmune Holdings fell Wednesday after the company reported a pretax loss for the six months ended Feb. 28, and said the pharmaceutical services market has been soft over the last 15 months.

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WE Soda Mulls London IPO

Kew Soda, which trades as WE Soda, said Wednesday that it is considering an initial public offering on the London Stock Exchange's main market.

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Purplebricks Says Lecram Holdings Has Withdrawn Takeover Offer

Purplebricks said Wednesday that Lecram Holdings has withdrawn its proposal to acquire the company and don't intend to make an offer at the current time.

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SKF Consolidates Manufacturing in Europe, Proposes Closing Luton Factory

STOCKHOLM--Swedish ball-bearing maker SKF said Wednesday it is consolidating its spherical roller bearing manufacturing to secure its competitiveness in European markets for the long-term.

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AECI's Director Mark Kathan Reelection Passes With Low Shareholder Support at AGM

AECI Ltd. said Wednesday that the resolution to reelect executive director Mark Kathan has passed with low shareholder support at the annual general meeting.

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Tern Shares Fall on Lower Net Assets, Swing to Pretax Loss in 2022

Shares in Tern fell Wednesday after the company said it swung to a pretax loss in 2022, and that net assets fell due to the unrealized fair value of a number of its businesses.

MARKET TALK:

Anglo American's Interesting Reorganization Could Address Stock Discount

1306 GMT - Anglo American has unveiled a business reorganization and leadership changes, including the planned departure of Finance Director Stephen Pearce--a loss for the company, but an expected one, RBC Capital Markets says. The London-listed miner should expect a high-caliber replacement for Pearce, but the changes to the organizational structure, including production unit consolidations, are interesting, RBC analysts write. "Although we wouldn't imagine a breakup is the main strategic direction for Anglo American, the new structure could provide optionality in the medium term for a different path and potentially help to address the long-standing discount generally found in Anglo American [stock]'s valuation vs. peers," RBC says. It retains its sector perform rating on the stock and 2,500 pence price target. Shares are down 0.3% at 2,259.0 pence. ([email protected])

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DP Eurasia Shares Doesn't Reflect Strength of Its Operations

1201 GMT - DP Eurasia delivered a strong start to the year in Turkey, and shares look undervalued, Liberum analysts Wayne Brown and Anubhav Malhotra write in a research note. Demand remained strong in the January-to-April period, which, combined with pricing and product innovations, drove the strong performance, the analysts say. The company's coffee-shop brand Coffy continues to show rapid development, with 11 new stores opened in the period. "We believe the shares do not reflect the strength of the operations, the value of the Domino's brand and the long runway of growth still available with both the Domino's and the Coffy brands," the analysts say. Liberum has a buy rating on the stock. Shares are up 6.1% at 7.65 pence. ([email protected])

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May 31, 2023 09:27 ET (13:27 GMT)