Pound May Extend Losses Vs Dollar on Ukraine Fears But Only Modestly

Sterling could extend its losses versus the dollar on risk aversion stemming from Russia-Ukraine tensions but expectations for further U.K. interest rate rises should cap the declines, ING says. "Should markets move to price in more geopolitical risk, cable [GBP/USD] may well break below the 1.3500-1.3600 range that has held since the start of February," ING says in a research note. At the same time, U.K. labor market and inflation data on Tuesday and Wednesday respectively should continue to support Bank of England rate rise expectations, he says. GBP/USD falls 0.3% to a one-week low of 1.3495, according to FactSet. 


 
Companies News:

88 Energy Raises A$32 Mln via Oversubscribed Share Placing

88 Energy Ltd. said Monday that it has now raised 32 million Australian dollars ($22.8 million) via an oversubscribed share placing which will be used to fund the Merlin-2 well in Alaska and any potential new ventures.

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President Energy Expects 2021 Adjusted Ebitda, Turnover Rose

President Energy PLC said Monday that it expects to report that 2021 adjusted Ebitda rose together with turnover, and that it sees a one-off benefit from the spinoff of its subsidiary.

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Tharisa Opens Negotiations to Buy Outstanding Stake in Tharisa Minerals

Tharisa PLC said Monday that it has begun negotiations to acquire the outstanding shareholdings in Tharisa Minerals Proprietary Ltd., and cautioned it may materially affect its share price.

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Ethernity Networks Sees Revenue Boost on Return to Higher-End Focus

Ethernity Networks Ltd. said Monday it has decided to return to plans to focus on the higher-end version of its universal edge platform, which should generate significant revenue during 2022 and 2023.

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Up Global Sourcing Forecasts 14% Gain in 1H Revenue

Up Global Sourcing Holdings PLC said Monday that it expects revenue for the first half of fiscal 2022 rose 14%, in line with expectations, and that it has seen recent signs of supply-chain improvements.

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Gensource Potash Settles Outstanding Claim

Gensource Potash Corp. said Monday that it has reached a confidential settlement agreement with Frank Eberhardt, Carl F Peters GmbH & Co. and 11664735 Canada Ltd., also known as 116, resolving all matters.

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Microsaic Systems to Issue 285 Mln Shares in Remuneration, Warrants

Microsaic Systems PLC said Monday that it will issue 285 million new shares in warrants and as remuneration for two of its nonexecutive board members, including its chairman, for their second year of service.

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Synthomer Sees in Line Ebitda for 2021

Synthomer PLC said Monday that it sees earnings before interest, taxes, depreciation and amortization for 2021 in line with current market expectations of 518.4 million pounds ($703.1 million) after experiencing a strong performance across all divisions in the year.

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Studio Retail Shares Suspended, Administrators to Be Appointed

Studio Retail Group PLC said Monday that trading in its shares has been suspended and it intends to appoint administrators after failing to reach an agreement with U.K. lenders for additional funding.

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Circle Property to Sell Largest Asset for GBP34.5M; Plans Shareholder Returns

Circle Property PLC said Monday that it has exchanged contracts to sell Kents Hill Park Training and Conference Centre, its largest asset, for 34.5 million pounds ($46.8 million) in cash and will return some of the money to shareholders.

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Wentworth Resources Says Tanzania Project Estimate Confirms Long-Term Potential

Wentworth Resources PLC said Monday that a 2021 reserves report for its interest in the Mnazi Bay gas license in Tanzania confirms the long-term potential of the project.

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URA Holdings to List in London on Feb. 21

URA Holdings PLC said Monday that it expects to start trading on the London Stock Exchange on Feb. 21 with the ticker URA.

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MC Mining Gets Shareholder Request to Remove Chairman, Interim CEO

MC Mining Ltd. said Monday that it has received a request from shareholders owning 6.8% of its issued share capital to call a meeting to make changes to the board, including the removal of its chairman and interim chief executive.

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Neometals Plans UK Listing in Late February; Won't Raise Capital

Neometals Ltd. said Monday it plans to list on the London Stock Exchange on Feb. 28 in order to capitalize on U.K. and European investor interest in supporting sustainable-battery value chains.

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Litigation Capital Management Appoints CFO to Board

Litigation Capital Management Ltd. said Monday that Chief Financial Officer Mary Gangemi has been appointed to the board with immediate effect.

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Cizzle Shares Rise on Acquisition of Stake in Covid-19 Treatment Commercialization

Shares in Cizzle Biotechnology Holdings PLC rose Monday after the company said it has entered into an agreement to acquire a 5% stake in the commercialization of a Covid-19 treatment.

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Wincanton Appoints James Clarke as Interim CFO

Wincanton PLC said Monday that it has appointed James Clarke as interim chief financial officer with effect from March 1.

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Barclays names new European leveraged finance chief as Susana Leith-Smith departs -- Financial News

The UK lender has made a number of changes to its upper ranks in recent months 


 
Market Talk:

UK Inflation Expected to Peak at 7.5% in April

1155 GMT - Inflation in the U.K. is set to peak higher and remain stickier than expected, Oxford Economics says. The economic-research firm sees U.K. inflation peaking at 7.5% in April due to a larger-than-expected rise in the energy price cap, with government support measures failing to mitigate its impact. Estimates for the rest of 2022 have also been revised upwards as Oxford Economics anticipates oil and gas prices to remain higher for longer. "Very high inflation will mean 2022 sees the biggest squeeze on household finances for more than a decade, but we do expect inflation to drop back considerably next year and our modelling suggests the chances of a shift to a high inflation regime remain low," OE says.

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Traders Likely to Continue Betting Against UK Gilts

1113 GMT - Traders are likely to continue to bet on U.K. government bond prices falling further as inflation runs high and the Bank of England raises interest rates, says Mizuho. "There's still some way to go for short U.K. rates positions," analysts at the Japanese bank say. They predict the 10-year gilt yield will hit 2.1% by year end, up from 1.487% at present. "10Y Gilt yields have already shifted higher by around 85bp since the lows of December, but rightly so given the structural dynamics at play," they say. While gilts don't face much pressure ahead on the supply front, the steep inflation and interest-rate outlook indicates that U.K. debt will underperform that of developed markets, they say.

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UK January Inflation Data Could Trigger Fed-Style Price Action

1106 GMT - Investors could start considering the possibility of the Bank of England raising interest rates between policy meetings if Wednesday's U.K. inflation data beats expectations, says Mizuho. "Just as intra-meeting hikes have been put on the table for the Fed, so too can the market think about this possibility in the U.K.," analysts at the Japanese bank say. A strong inflation reading could prompt investors to price in a more drastic tightening path from the BOE, they say, adding that they expect gilts to underperform other developed market sovereign bonds.

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Studio Retail Likely to Seek Buyer as It Heads for Administration

1019 GMT - Studio Retail Group is getting ready to go into administration having failed to secure a short-term loan, and it now looks as if a buyer will be sought for the business, AJ Bell says. The value retailer's biggest share holder is Mike Ashley's Frasers Group with a 28.89% position, and his tactic has often been to wait until a retailer goes into administration before pouncing with a cut-price deal, the brokerage says. "[Mr. Ashley]'s a shrewd operator and would rather wait until a company is on its final breath before coming in with a lifesaving offer," AJ Bell financial analyst Danni Hewson says. Studio Retail's shares have been suspended from trading upon the company's request.

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UK Inflation Data Could Spark Gilt Selloff

0954 GMT - U.K. inflation data due Wednesday could spark a selloff in gilts, says Mizuho. There is "a high potential for an upside surprise," analysts at the Japanese bank say, adding that unless there's a disappointing print the market is likely to consider an even more drastic tightening path from the Bank of England. The consumer price index measure of inflation for January is forecast to have eased 0.2% in the month from 0.5% in December, while annual CPI inflation is set to have stayed unchanged at 5.4% in the same time frame, according to economists surveyed by the Wall Street Journal.


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

(END) Dow Jones Newswires

02-14-22 0736ET