Sterling Seen as Vulnerable After BOE Rate Rise Bets Adjust Lower

The recent scaling back of interest rate rise expectations for the Bank of England seems to have left sterling vulnerable and unable to fully benefit from improved sentiment surrounding the Ukraine war, ING says. EUR/GBP rises to a three-month high of 0.8487. EUR/GBP could rise further, testing the 0.8500 resistance level by the end of the week, ING analysts say. However, there probably isn't enough fundamental justification for EUR/GBP to trade consistently above 0.85 as the European Central Bank lags the BOE in raising rates and the Ukraine war is likely to hit the eurozone economy harder than the U.K., they say. "A gradual return to the 0.83-0.84 region looks more likely into the summer." 


 
Companies News:

Symphony Environmental Technologies 2021 Pretax Loss Widened on Higher Costs

Symphony Environmental Technologies PLC said Wednesday that its 2021 pretax loss widened after booking higher costs, and that the war in Ukraine may hurt future raw material costs as most of its products are derivatives of oil and gas.

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Intercede Shares Rise on US Government Order

Shares in Intercede Group PLC rose Wednesday after the company said it has received an order from the U.S. Federal Government worth $3.4 million.

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Pearson Shares Fall as Apollo Withdraws Takeover Plans

Shares in Pearson PLC fell on Wednesday after Apollo Global Management Inc. confirmed that it doesn't intend to make an offer for the textbook publisher after a takeover proposal that valued it at around 6.5 billion pounds ($8.51 billion) was rejected earlier this month.

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Michelmersh Brick Holdings 2021 Pretax Profit Rose; Raises Dividend

Michelmersh Brick Holdings PLC said on Wednesday that pretax profit for 2021 rose, on the back of a robust gross margin performance, and that it raised its dividend payout.

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Team17 2021 Pretax Profit Rose; Warns on 2022 Revenue Hit From Ukraine War

Team17 Group PLC said Wednesday that 2021 revenue and pretax profit rose, but warned that the war in Ukraine is forecast to hit 2022 revenue by around 4 million pounds ($5.2 million).

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Electrocomponents Sees FY 2022 Revenue, Adjusted Operating Profit Margin, at Top End of Consensus

Electrocomponents PLC said on Wednesday that it expects revenue and adjusted operating profit margin for fiscal 2022 to be at the top end of consensus, and that it has continued to perform at the same rate as that reported on March 9.

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Bloomsbury Sees FY 2022 Trading Materially Ahead of Upgraded Expectations

Bloomsbury Publishing PLC said Wednesday that trading for fiscal 2022 is materially ahead of upgraded expectations after strong sales and the mitigation of print supply chain issues.

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Keywords Studios 2021 Pretax Profit Rose; Declares Dividend

Keywords Studios PLC said on Wednesday that 2021 pretax profit rose driven by higher demand, as it expects 2022 to be a strong year for new game launches.

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Polymetal Suspends, Delays Projects in Russia

Polymetal International PLC said Wednesday that it is delaying or suspending some of its projects in Russia and reducing its exploration budget.

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Ebiquity 2021 Pretax Loss Widened After Acquisition Costs

Ebiquity PLC said Wednesday that its pretax loss for 2021 widened after booking costs of 7.9 million pounds ($10.3 million) relating to the 2020 acquisition of Digital Decisions.

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John Menzies Agrees to GBP571 Mln Takeover by National Aviation Services, Agility

John Menzies PLC said Wednesday that it has agreed to a 571 million pound ($747.7 million) takeover by National Aviation Services and Agility Public Warehousing Co., as flagged last month. 


 
Market Talk:

Team17 May Need Clarity, Structural Support to Convert Growth Potential

0933 GMT - Team17 Group is in an exciting position with several growth avenues, but internal staff support and a clear strategy explaining the key drivers may be needed for execution, Shore Capital says. The continuing impact of the Covid-19 pandemic and associated uncertain working environments, combined with the cost of living squeeze and high wage inflation, is expected to increase costs at the videogame company by GBP1.7 million in 2022, the U.K. investment group says. Shore Capital cuts its recommendation on the stock to hold from buy amid expectations of higher costs and potential headwinds. Shares trade down 6.8% at 550 pence.

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Strix Group Expected to Continue to Face Downside Risk

0922 GMT - Strix Group is a well-managed, operationally strong company, but downside risk remains despite recent share-price weakness, Shore Capital says. The U.K. kettle-safety-controls supplier will have difficulty achieving management's 2025 targets without significant M&A and further share dilution, Shore says. "Despite some products having faster filtration, we consider many of the water category's products that generate a material portion of the category's revenue to have only marginal advantages over competing products," the U.K. investment group says. Shore Capital maintains its sell rating on the stock. Shares trade down 6.3% at 225 pence.

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Polymetal Is Setting Itself Up to Survive

0907 GMT - Polymetal appears to be able to sell gold and silver from Russia to markets in Asia and is benefiting from domestic demand, while the company has a decent amount of dollar-denominated liquidity in non-sanctioned banks, AJ Bell says. Attention will be on the capital markets day at the end of April, particularly on the plans for a spinoff of its Kazakh assets, the investment platform says. "With its operations continuing to chug along, new board appointments in place and sanctions not having a material impact on the business for now, Polymetal is setting itself up to survive," AJ Bell says.


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

(END) Dow Jones Newswires

03-30-22 0616ET