BOE Rate Cut Speculation Could Hit Pound

BOE Rate Cut Speculation Could Hit Pound

0857 GMT - Sterling may weaken amid speculation that grim U.K. economic fundamentals could mean the Bank of England cuts interest rates this year, Rabobank says. Even if the BOE has good reason to step up a "hawkish" tone by indicating further rate rises given the tight labor market, there were various instances last year when this failed to boost sterling due to the backdrop of weak investment growth, low productivity and ongoing Brexit uncertainties, Rabobank forex strategist Jane Foley says in a note. "We retain the view that EUR/GBP will creep to 0.90 on a six to nine month view." EUR/GBP rises 0.5% to 0.8834. ([e-mail])

Companies News: 

B&M European Value Narrows FY 2023 Guidance After 3Q Revenue Rose

B&M European Value Retail SA on Thursday narrowed its fiscal 2023 guidance for adjusted Ebitda as the group reported a 12% rise in its third-quarter revenue.

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Next Raises FY 2023 Profit Guidance; Sees Profit Falling in Fiscal 2024

Next PLC on Thursday raised its pretax profit guidance for fiscal 2023, but said it expects earnings to fall in fiscal 2024 as the economy is squeezed by inflation.

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Greggs Sees 2022 Sales Rising; Reports Strong End to Year

Greggs PLC said Thursday that it had a strong final quarter of 2022, and that it expects full-year sales to rise 23%.

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Glenveagh Properties 2022 Revenue Rose, Starts Share Buyback

Glenveagh Properties PLC said Thursday that it expects to report a significant rise in revenue for 2022, driven by a strong performance in its suburban business segment, and launched a share buyback program.

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Live Company Starts Cost-Saving Measures; Reviewing Debt Structures

Live Company Group PLC said Thursday that it is initiating cost-saving actions as it expects to book a loss in 2022 and it is reviewing debt structures with the view of renegotiating repayment schedules.

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Mattioli Woods 1H Revenue Rose; FY 2023 Outlook in Line With Views

Mattioli Woods PLC said Thursday that first-half revenue was 10% higher than last year and that its outlook for fiscal 2023 remains in line with management expectations.

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Angle 2022 Revenue Was Flat; Sees 2023 Revenue Rising but Missing Market Views

Angle PLC said Thursday that it expects to report flat revenue for 2022, though its loss widened, and sees 2023 revenue growing but likely materially below current market expectations.

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Proteome Sciences Gets GBP870,000 Milestone Payment

Proteome Sciences PLC said Thursday that it has received a milestone payment of around 870,000 pounds ($1.0 million), for sales of TMT and TMTpro.

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Hydrogen Utopia International's London Listing Prospectus Approved by FCA

Hydrogen Utopia International PLC said Thursday that its supplementary prospectus for the company's planned trading on the London Stock Exchange's official list has been approved by the U.K. Financial Conduct Authority.

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Next Raises FY 2023 Profit Guidance But Expects Tighter Year Ahead -- Update

Next PLC on Thursday raised its pretax profit guidance for fiscal 2023 after better-than-expected Christmas sales, but said it expects earnings to fall in fiscal 2024 as the economy is squeezed by inflation and consumers deal with increased mortgage payments as fixed interest-rate deals expire.

 
Market Talk: 

B&M's Ability to Hold Margins Will Be in Focus, Jefferies Says

0839 GMT - B&M European Value Retail's resilience in delivering mid-term margins is where the debate will focus in the months to come, Jefferies says in a note. The convenience retailer's strong 3Q sales and narrowing of its full-year Ebitda guidance won't surprise many and investors will be looking at what this means for the fiscal year ahead, the U.S. bank says. "Attention will likely be on how successfully the business can prevent a more meaningfully profit unwind," says Jefferies, which has an underperform rating on the stock. Shares rise 1.8% at 453.3 pence. ([e-mail])

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Next Could Be Set for Upgrades After Strong End to 2022

0853 GMT - Next finished 2022 strongly with retail stores a particular highlight in the latter part of the year, Interactive Investor Head of Markets Richard Hunter says in a note. The fashion retailer should benefit in the year ahead from a decline in prices of key commodities, supply improvements and reducing freight costs, but fears on inflationary pressures and a consumer squeeze linger, he adds. "The company remains well-regarded and tightly managed, and although the market consensus has recently slipped slightly to a strong hold, the initial spike in the share price in early exchanges could well foreshadow upgrades which would restore the generally positive view," Hunter says. Shares trade up 9.2% at 6,660.00 pence. ([e-mail])

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UK Airlines Shares Soar after Ryanair Lifts Guidance

0853 GMT - Shares in U.K. airlines trade higher after Irish low-cost carrier Ryanair raised its fiscal 2023 guidance late Wednesday to reflect a stronger-than-expected holiday period. Ryanair said it benefited from strong pent-up travel demand over the holiday season for the first time in three years. Ryanair shares are up 5% at EUR13.49, easyJet is up 4% at 368.9 pence, International Consolidated Airlines Group is up 3.8% at 139.58 pence, Wizz Air is up 5.1% at 2,201.0 pence, Jet2 is up 3.7% at 1,022.5 pence and TUI is up 1.2% at 148.0 pence. ([e-mail])

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B&M Seen as Well-Placed to Navigate Downturn

0855 GMT - B&M European Value Retail is well-placed to face the looming slowdown in the U.K. retail sector, Interactive Investor says in a market comment. "B&M's is well-positioned to navigate the downturn as consumers turn to its cheaper product range as lower disposable incomes spur customers to hunt for a bargain," analyst Victoria Scholar says. Shares, which are trading at their highest price since the end of May, are boosted by B&M's "defensive properties which should help to weather the macroeconomic storm" after the discount retailer said it would pay a special dividend and provided an upbeat full-year outlook, she notes. Shares are up 2.0% at 454.2 pence. ([e-mail])

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Luxury's Stars Set to Shine in 2023

0855 GMT - Luxury's biggest players look set to keep making strides in 2023, Bernstein analysts say in a note. French sector leader LVMH and Swiss group Richemont have few clouds on their respective horizons, while fashion house Hermes can benefit from further price increases ahead, Bernstein says. At France's Kering, however, much hinges on the appointment of a new creative chief at main brand Gucci, the analysts add. Smaller players like Italy's Prada and Swiss watchmaker Swatch also look good heading into 2023, especially amid a China rebound for the latter, while U.K. firm Burberry looks better equipped under new creative director Daniel Lee, Bernstein says. ([e-mail]; @joshualeokirby)

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Greggs Has Bright Future After Strong 2022

0856 GMT - Greggs reported a strong end to 2022 despite strikes and it may be time to reassess recommendations, Shore Capital says. The on-the-go food retailer's performance is especially impressive given it has had to adapt to remarkable change over the last three years, with further considerable organic growth anticipated, Shore analysts Clive Black and Darren Shirley say in a research note. "Whilst we have set out our stall for 2023 to be another difficult one for the British consumer, particularly the first half, we see Greggs' strong core value proposition and tasty assortment, as being resilient," Shore says. Shore retains its hold rating on the stock, but says any changes to expectations and recommendations will be outlined in the near future. Shares are up 0.7% at 2,460.0 pence. ([e-mail])

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Next Shares Look Set for Further Gains

0933 GMT - Next has demonstrated resilience and outperformance despite factors weighing against the sector after booking a 4.8% increase in full price sales during the nine weeks to Dec. 30, Liberum analysts say in a research note. For fiscal 2024, the fashion retailer sees pretax profit of GBP795 million, but Liberum expects the company to better this and post GBP805 million as it thinks Next will take market share from weaker competitors amid a tough operating environment. Further share price gains also look in the offing, the analysts say. Liberum has a buy rating on the stock with a target price of 7,500 pence. Shares trade up 7.0% at 6,524.00 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

01-05-23 0458ET