UK Political Uncertainty Unlikely to Impact Pound

Political uncertainty surrounding calls for U.K. Prime Minister Boris Johnson to resign are unlikely to have much impact on the pound, MUFG Bank says. "Firstly, we doubt we have arrived at that juncture," MUFG analyst Derek Halpenny says. An inquiry over claims Downing Street officials held a series of parties during lockdown could take weeks, he says. Secondly, a new prime minister wouldn't "dramatically" change policy to a degree that would affect sterling's performance, he says. GBP/USD rises 0.2% to 1.3737 after hitting a two-and-a-half-month high of 1.3747 earlier, according to FactSet, due to a weaker dollar. EUR/GBP is flat at 0.8348. 


 
Companies News:

Persimmon PLC 2021 Revenue Rose, Forward Sales Slip Slightly

Persimmon PLC said Thursday that revenue rose 8.4% in 2021, though its current forward-sales position for the year fell slightly on-year.

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Tesco 3Q Sales Rose, Boosted by Strong Christmas Demand

Tesco PLC said Thursday that it has had stronger-than-expected sales to date following a strong third quarter of fiscal 2022 and robust during Christmas, and that it now expects to post a retail operating profit for the full fiscal year slightly above its previous top-end guidance.

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Marks & Spencer Reports Strong Performance Over Christmas; Backs FY 2022 Guidance

Marks & Spencer Group PLC said Thursday that its performance over the Christmas period was strong, and backed its guidance for the year.

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ASOS Backs FY 2022 Guidance; To Move to LSE Main Market

ASOS PLC said Thursday that its guidance for the year remains unchanged despite uncertainty related to the Omicron coronavirus variant, and that it intends to move to London Stock Exchange's main market.

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Quixant Sees 2021 Revenue, Adjusted Pretax Profit, Ahead of Views

Quixant PLC said on Thursday that it expects 2021 revenue and adjusted pretax profit to be ahead of market expectations despite the continued pressure on margins stemming from price inflation and electronic-component shortages.

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Card Factory Warns of FY 2023 Inflation Hit, Shares Drop

Card Factory shares slipped on Thursday after the company warned that fiscal 2023 profits will be lower than previously expected as inflationary pressures hurt margins.

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Attraqt Sees 2021 Fiscal Performance Improving

Attraqt Group PLC said Thursday that it expects its 2021 financial performance to grow in line with its expectations, after signing further multiyear contract renewals.

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Pharos Energy CEO to Step Down After IPR Energy Transaction

Pharos Energy PLC said Thursday that Chief Executive Officer Ed Story will step down upon completion of its transaction with IPR Energy AG, expected in the first quarter of 2022, and be replaced by Jann Brown.

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Woodbois Sees 2022 Growth, But Constrained by Shipping Issues

Woodbois Ltd. said Thursday that it expects to increase revenue and profit in 2022, but at lower levels than expected due to continued shipping delays caused by the coronavirus pandemic.

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Aura Energy Appoints Will Goodall as Acting CEO

Aura Energy Ltd. said Thursday that it has appointed Will Goodall as acting chief executive officer.

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Holders Technology to Pay Special Dividend After Completing Disposal

Holders Technology PLC said Thursday that it will pay a special dividend of 2.0 pence (3 cents) after having completed the sale of certain printed circuit board assets.

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Crypto-Savings Lawsuit Puts Principles of DeFi to the Test

The emerging world of decentralized finance offers the holders of cryptocurrency many of the amenities of a modern financial system, under the premise that blockchain technology can cut out the middlemen, replacing flesh-and-blood bankers with autonomous, self-governing computer programs. 


 
Market Talk:

ASOS Jumps After Update, Main-Market Plan

1028 GMT - ASOS shares jump 9.8% after the online clothing retailer kept full-year guidance unchanged despite supply-chain issues and coronavirus variant-related uncertainty. Though a 5% sales rise in the four months to Dec. 31 might not seem remarkable, it has gone down well with investors who perhaps feared it wouldn't even achieve that, AJ Bell says. "The challenge now is to achieve stronger growth," AJ Bell investment director Russ Mould says, adding that the AIM-listed company's plan to move to London's main market by the end of February means it should qualify for a place in the FTSE 250 index later this year and benefit from index funds buying its stock.

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UK Digital Currency Could Risk Run on Commercial Banks

1028 GMT - The Lords Economic Affairs Committee was right to highlight the risks of introducing an official U.K. digital currency, AJ Bell says. "A digital pound could cause widespread disruption in the banking sector if it is introduced, as well as increasing the chance of a run on commercial banks in times of financial stress," AJ Bell analyst Laith Khalaf says. Mass adoption of a digital pound would cause a big shift of money out of deposit accounts, a key source of funding for commercial banks, he says. However, it would have some benefits such as facilitating cross border payments without high fees, he says. The proposal is worth investigating but the Bank of England needs to tread "very carefully," he says.

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Persimmon Falls as Trading Update Underwhelms Investors

0933 GMT - Shares in Persimmon drop 3.1% after the U.K. house-builder said its current forward-sales position for the year fell slightly on-year. Total forward sales value was GBP1.62 billion as of Dec. 31, compared with GBP1.69 billion a year earlier. "With approaching 300 sites in operation, Persimmon has a lot of moving parts," Hargreaves Lansdown fund manager Steve Clayton says. "Some analysts expected turnover to be a shade higher, but then again, the big jump in forward bookings, up from GBP1.32 billion to GBP1.62bn, suggests demand is fine and most likely, some completions slipped over the year-end as Omicron raced through workforces up and down the country."

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Tesco Shares Drop Despite Strong Christmas

0929 GMT - Tesco is among the biggest FTSE 100 fallers, down 1.6% even after the U.K. grocer reported stronger-than-expected sales to date and said it expected full-year retail operating profit slightly above previous top-end guidance. In a 3Q update covering the 19 weeks to Saturday, Tesco said Christmas performance had been strong. "Shareholders seem a little less impressed, with the shares falling back in early trade," CMC Markets analyst Michael Hewson says. "This response seems a little churlish, but may have more to do with the fact that the shares are close to their highest levels in 11 months. It certainly doesn't mean they can't go higher longer-term."

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ASOS Has Work to Do This Year After Slow Start to 2022, Liberum Says

0853 GMT - ASOS has maintained its guidance despite seeing its demand in the European Union and the U.S. being hit by supply-chain challenges and the effects of the Covid-19 Omicron variant, Liberum says. The online fashion retailer's slow start to the year leaves significant work for the rest of 2022, the U.K. brokerage says, noting that the company's gross margin declined to 43%, and that it has also burned significant cash to achieve technological and infrastructure progress. Liberum keeps its hold recommendation on the stock and reduces its target price to 2,300 pence a share from 3,560 pence. Shares are up 6% at 2,394.00 pence.

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Marks & Spencer Valuation Isn't in the Bargain Basement Anymore

0827 GMT - Marks & Spencer's third-quarter update is seen as another positive data point, with strong sales in the clothing and home category and full-price sales in clothing, RBC Capital Markets. Food sales were also robust over the peak period, RBC notes. But, although the U.K. retailer is making steady progress in food--helped by an improved value-for-money perception, range development and its joint venture with Ocado Retail--its more premium offer may lose some momentum in a higher-cost environment, RBC says. "We think Marks & Spencer's valuation is reasonable but not in the bargain basement anymore, as it was for much of spring and summer 2020," the bank says.

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Tesco's 3Q, Christmas Performance Shows Strength in Meeting Targets

0825 GMT - Tesco's performance and growth in sales evidence the strength of its foundations to deliver on its targets, Citi says. The U.K.'s biggest grocer by market share set out its stall to deliver sales, EBIT and market share over the mid-term and, so far, so good, Citi says. "Evidencing the relative strength of its value-focused offer, Tesco has seen consistent switching gains from its competitor set and is growing share both in-store and online," the U.S. bank says in relation to its U.K. performance. Citi has a buy recommendation on the stock and a target price of 300 pence.

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

01-13-22 0607ET