Pound to Rise Versus Euro if EU Postpones Ban on UK Meat Sales in NI

The pound could rise slightly against the euro if the EU agrees to postpone a ban on the sale of chilled meats into Northern Ireland from the rest of the U.K., ING says. The cost of insuring against large swings in EUR/GBP for the next month, known as implied volatility, is low so big moves are unlikely but the market will cheer any progress on U.K.-EU relations, ING analysts say. "A three-month extension of the waiver on U.K. exports of chilled meat to Northern Ireland would be welcome," they say. EUR/GBP is flat at 0.8594. One-month implied volatility in EUR/GBP is last around 4.6%, according to FactSet. 


 
Companies News:

Rambler Metals & Mining Shares Rise on Financing Agreements

Shares in Rambler Metals & Mining PLC rose on Wednesday after the company said that it has agreed up to $50 million in financing to continue the underground development of its Ming Mine in Canada and pay off existing debts of $6.6 million.

---

7Digital Group Shares Fall After Warning on Working-Capital Pressure

Shares in 7Digital Group PLC fell Wednesday after the company warned that pressure on short-term working capital and its reliance on anticipated revenue growth point to potential uncertainty about its future.

---

Mercantile Ports & Logistics Granted Extension for Filing 2020 Accounts

Mercantile Ports & Logistics Ltd. said Wednesday that it has been granted an extension for the filing of 2020's accounts to Sept. 30 due to the disruption of the pandemic in India.

---

Urban Logistics REIT to Raise GBP108 Mln for Investments

Urban Logistics REIT PLC said Wednesday that it intends to hold a share placing to raise around 108 million pounds ($149.5 million), in order to invest in a pipeline of mostly off-market opportunities.

---

Vertu Capital to Reverse Into Vox Capital in GBP25.3 Mln Deal

Vertu Capital Ltd. said Wednesday that it has agreed to buy Vox Capital PLC for 25.3 million pounds ($35 million) in shares.

---

Getech Makes Significant $536,000 Sale; Performance Is in Line With Market Views

Getech Group PLC said Wednesday that it has made a significant sale worth $536,000 of its geoscience data and a regional study package, and that it is performing in line with full-year market views.

---

Wynnstay Group 1H Pretax Profit, Revenue Rose

Wynnstay Group PLC said Wednesday that profit and revenue for the first half rose, and that it expects a positive outcome for the second half.

---

Ferrexpo to Repay Pre-Export Finance Facility Early on Strong Performance

Ferrexpo PLC said Wednesday that it plans to make an early repayment of an outstanding pre-export finance facility, reflecting its strong performance.

---

Treatt CFO Richard Hope to Retire in One Year

Treatt PLC said Wednesday that Chief Financial Officer Richard Hope will retire from the business effective June 30, 2022, and that a process to find a successor will start shortly.

---

Baltic Classifieds Shares Rise in London Market Debut

Shares of Baltic Classifieds Group PLC rose 3% as the company started conditional trading on the London Stock Exchange on Wednesday, implying a market capitalization of 850 million pounds ($1.18 billion).

---

TP Group CEO to Step Down

TP Group PLC said Wednesday that Chief Executive Officer Phil Cartmell will step down, effective from the closure of this business day, and has appointed an interim CEO until a successor is found.

---

Saietta Group Eyes GBP102.1 Mln Valuation in London IPO

Saietta Group PLC, a U.K. electric-motor engineering company, expects to be valued at 102.1 million pounds ($141.3 million) at its initial public offering on London's AIM, according to a filing published Wednesday.

---

Eden Research Shares Fall on Widened 2020 Pretax Loss; 2021 Revenue Warning

Shares of Eden Research PLC fell as much as 15% in early trade Wednesday after the company reported a widened pretax loss and lower revenue for 2020 and said that revenue this year is likely to be hit by supply-chain-related issues.

---

Bermele Acquires Premium-Beverages Company for GBP24.4 Mln

Bermele PLC on Wednesday said that it has agreed to acquire premium-beverages company East Imperial Pte. Ltd. for 24.4 million pounds ($33.8 million).

---

Clinigen Group Sells UK Compounding Business for GBP7.8 Mln

Clinigen Group PLC said Wednesday that it has agreed to sell its non-core U.K. specials manufacturing and aseptic compounding business for up to 7.8 million pounds ($10.8 million), as part of the company's simplification plan. 


 
Market Talk:

Universal Music Should Perform Strongly After Spinoff

0944 GMT - Universal Music Group has been Vivendi's fastest-growing and most valuable asset in the last few years and the record label is expected to have a strong performance after its spinoff from the French media conglomerate in September, Credit Suisse says. "Post spin-off, UMG should continue to benefit from its good growth, global addressable market and independent governance," the Swiss bank says. Vivendi shareholders overwhelmingly backed plans to receive 60% of Universal Music Group in a special distribution and list the record label in the Netherlands, with trading expected to start on Sept. 21.

---

Investors Are Surprised by Harbour Energy's Weak Stock Performance

0938 GMT - Harbour Energy shares are down 9% over the past month and 21% during the past three months. Investor feedback is a mix of surprise and frustration at the company's weak stock price performance, particularly against a backdrop of strong commodity prices since Harbour was formed at the end of March, Jefferies says. This should start to change as the oil-and-gas group delivers to plan and continues deleveraging, Jefferies says. Harbour's comments that 2021 production will be at the low end of the guidance range have a minimal effect on Jefferies's estimates for the year, it says. The U.S. bank has a buy recommendation on Harbour with a 595 pence target price.

---

Stagecoach Regional Bus Recovery Remains Uncertain

0908 GMT - Although Stagecoach's results for fiscal 2021 were better than expectations, with revenue of GBP928.2 million versus consensus of GBP912.3 million, full regional bus recovery remains uncertain, with the company mentioning inflationary measures and uncertainty regarding fiscal 2022's profit level, Jefferies says. Regional bus vehicle mileage for the transportation group has been restored to around 94% of pre-pandemic levels, and patronage and commercial revenue are on an improving road, with commercial sales at around 68% of 2019's sales, the U.S. bank says. "We remain cautious on U.K. regional bus, but London bus is resilient and the valuation looks attractive," the bank says. Jefferies has a buy rating on the stock and a 90-pence target price. Shares are down 2.4% at 80.10 pence.

---

EU Airlines Trade Down Amid Concerns About Delta Variant

0847 GMT - European airlines trade lower as the more-contagious Delta coronavirus variant spreads across Europe, prompting countries to issue new travel restrictions and putting summer 2021 at risk. "The Delta wave is rolling in," Holger Schmieding from Berenberg says. "Following the U.K. with a lag of roughly seven weeks, recorded SARS-CoV-2 infections are apparently starting to edge up in the eurozone amid major regional variations," Schmieding says. Among other countries, Spain and Portugal decided to restrict access to their territory to U.K. travelers. Air France-KLM trades 3.6% lower, while its German peer Lufthansa is down 1.8%.

---

Investors Likely to Shrug off Larger Than Expected 1Q UK GDP Contraction

0839 GMT - Recent U.K. monthly data points to a much rosier picture for the U.K. economy, offsetting an unexpectedly deeper-than-expected GDP contraction in the first quarter of this year relative to the previous three-month period, says Jonathan Sparks, chief investment officer U.K. and Channel Islands, Private Banking and Wealth Management at HSBC. "By our estimates, GDP should grow by 5.5% in the second quarter alone and that's what investors will be focusing on," Sparks says. As the economy recovers he expects investors will have a greater willingness to take on more risk, driving investors toward equity markets. Official data showed U.K. GDP is estimated to have shrunk by 1.6% on quarter in 1Q.

---

Ferrexpo Is Debt Free Ahead of Next Investment Cycle

0836 GMT - News that Ferrexpo has decided to repay an outstanding pre-export finance facility early means the company is debt free for the first time in more than a decade, Peel Hunt says. "We believe it puts the group in a very powerful position in the lead up to its next investment cycle--we expect it to start in 2023," Peel Hunt says. The London-listed, Switzerland-headquartered iron-ore company with assets in Ukraine now has full discretion over its cash-flow generation for the remainder of 2021 and 2022, and has increased flexibility for potentially distributing cash back to investors, Peel Hunt says.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

06-30-21 0617ET