FTSE Rises, BOE's Rate Decision Could Benefit Sterling in Short-Term

March 16, 2022 at 08:07 am EDT

BOE's Rate Decision Could Benefit Sterling in Short-Term

1119 GMT - Sentiment around sterling looks quite downbeat but the Bank of England's meeting on Thursday may offer the currency some brief relief, HSBC says. A 25 basis-point rate rise is fully priced so that's unlikely to have a notable impact on sterling but the currency will rise in the short-term if the split of votes on the decision shows some policymakers backing a larger increase, HSBC forex analyst Dominic Bunning says in a note. "Should we see further calls for 50bp hikes this week by some Monetary Policy Committee members, then we would expect GBP to bounce." The BOE raised its key rate by 25 basis points to 0.50% in February but four out of nine officials voted for a 50 basis-point rise.


 
Companies News:

Hammerson Sells Silverburn for GBP140 Mln

Hammerson PLC said Wednesday that Silverburn, its flagship shopping center near Glasgow, has been sold for 140 million pounds ($182.6 million) cash to entities affiliated with Henderson Park and Eurofund.

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UK Regulator Says NortonLifeLock's Acquisition of Avast Raises Competition Concern; Avast Shares Fall

Shares in Avast PLC fell on Wednesday after the U.K. competition watchdog said that NortonLifeLock Inc.'s proposed acquisition of Avast raises competition concerns, and that it intends to refer the case for an in-depth investigation.

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Fevertree 2021 Pretax Profit Rose on Strong UK, US, Europe Performance

Fevertree Drinks PLC on Wednesday reported a rise in pretax profit, and said that it maintained its number-one position in the U.K. retail-mixer category.

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Restore PLC 2021 Pretax Profit Soared; Declares Dividend

Restore PLC said Wednesday that pretax profit for 2021 jumped, driven by strong sales momentum, and that it would make a dividend payout.

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Restaurant Group FY 2021 Pretax Loss Narrowed as Underlying Earnings Jumped

Restaurant Group PLC on Wednesday reported a narrowed pretax loss for the 2021 fiscal year, and said sales outperformed the market in the first two months of 2022.

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IP Group Says 2021 Pretax Profit Rose Significantly, 2022 Started Strongly

IP Group PLC posted on Wednesday a rise in pretax profit for 2021 and said it entered 2022 in a very strong financial position, and that it has many opportunities ahead.

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Computacenter 2021 Pretax Profit Rose; Raises Dividend

Computacenter PLC said Wednesday that pretax profit for 2021 rose on stronger demand and announced a 31% increase of its full-year dividend payout.

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Alpha FX Posts Higher 2021 Profit, Says No Material Impact From Ukraine War

Alpha FX Group PLC on Wednesday reported that its profit nearly doubled in 2021, and said that it hasn't been materially affected by the war in Ukraine to date.

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Centaur Media Says It Swung to 2021 Pretax Profit; 2022 Business Is in Line With Views

Centaur Media PLC reported Wednesday a swing to a pretax profit for 2021 and said it is well placed for further growth in 2022.

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IG Group 3Q Net Trading Revenue Rose

IG Group Holdings PLC said on Wednesday that net trading revenue for the third quarter of fiscal 2022 rose 13%, and that revenue growth for the year for its tastytrade division might remain below guidance.

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Bytes Technology Expects FY 2022 Results Ahead of Views

Bytes Technology Group PLC said Wednesday that it expects to report results for fiscal 2022 ahead of expectations.

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Atlantic Lithium Appoints CFO Amanda Harsas Finance Director

Atlantic Lithium Ltd. said Wednesday that Chief Financial Officer Amanda Harsas has been appointed to the board as finance director effective immediately.

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4imprint Group Says 2021 Pretax Profit Rose; Performance in 2022 'Encouraging'

4imprint Group PLC reported on Wednesday a significant rise in pretax profit for 2021, as it benefited from a material increase in total orders and the number of new customers acquired.

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Advanced Medical Solutions Posts Improved 2021 Profit, Agrees to Acquire AFS Medical

Advanced Medical Solutions Group PLC on Wednesday reported that its profitability doubled in 2021, reflecting increased sales volumes, and said that it has agreed to acquire an Austrian surgical-devices company.

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C&C Group Expects to Return to Profit in FY 2022 on the Back of Strong Demand

C&C Group PLC said Wednesday that it expects to return to operating profit in fiscal 2022 as it benefited from a robust performance driven by strong consumer demand.

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CLS Holdings 2021 Pretax Profit Fell on Lower Gains From Disposals

CLS Holdings PLC said Wednesday that 2021 pretax profit fell due to lower gains from disposals, and that it was well positioned for 2022 onward.

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Gym Group 2021 Pretax Loss Narrowed; Sees Revenue Recovery in 4Q 2022

Gym Group PLC said Wednesday that pretax loss for 2021 narrowed as the group is benefiting from the reopening of the economy.

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UK Regulator Says NortonLifeLock's Acquisition of Avast Raises Competition Concern; Avast Shares Fall -- Update

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LSL Property Services' 2021 Pretax Profit Rose; Further Growth Seen for 2022

LSL Property Services PLC reported Wednesday a record financial performance for 2021, which enables the company to continue investing in its outlook to deliver its ambitious growth strategy.

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Pensana Reduced Capex, Operating Costs; Shares Rise

Shares in Pensana PLC rose on Wednesday after the company said it has reduced its capital expenditure and operating costs and that this will make its U.K. rare earth separation facility at Saltend and the Longonjo concentrator in Angola, more attractive to its financiers.


 
Market Talk:

BOE Expected to Deliver 25 Bps Rate Rise in Split Vote Thursday

1143 GMT - The Bank of England is likely to raise its base rate by 25 basis points to 0.75% this Thursday, though some rate-setters will again vote for a larger increase, Ebury says. "With inflation surging and risks to near-term growth mounting, we think that the BoE will aim to strike a delicate balance on Thursday," it says, adding that the Monetary Policy Committee "will be keen for the market to not get too carried away with pricing in an aggressive pace of hikes." The yield on two-year gilts, which are more sensitive to changes in interest rates, trades four basis points above Tuesday's close, at 1.4%, marking a two-day high, according to Tradeweb.

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Restaurant Group Can Offset Higher Energy Costs

1118 GMT - The Restaurant Group warned that the increases in electricity and gas prices will cost it an additional GBP6 million-GBP7 million in 2022, which is GBP1 million-GBP2 million higher than previous guidance, Peel Hunt says. The U.K.-based restaurant operator also noted very strong sales growth in the first weeks of the year, and therefore Peel Hunt believes that the incremental energy costs can be offset by higher sales. Overall, results for 2021 were slightly ahead of expectations, as The Restaurant Group has performed well since U.K. indoor trading resumed in May, the investment bank says. Shares rise 6.7%.

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Town Centre Securities Shares Look Cheap Amid Recovery

1056 GMT - Town Centre Securities 1H results show its bounce back from the coronavirus disruption is well underway, and shares look very cheap, Liberum says. The U.K. property investment company's net tangible asset value rose 7% over 1H, around 6% ahead of Liberum's forecast, while EPS rose to 5.0 pence from zero, compared with Liberum's 1.7 pence expectation. The shares are currently valued at a 54% discount to December's net tangible asset value, pricing in a 25% decline in property value, which looks too steep, according to the U.K. brokerage. Liberum retains its buy rating and raises it price target to 210 pence from 200 pence. Shares are up 1.1% at 141.0 pence.

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Fevertree Drinks Flags Higher Profit But Cuts Forecast

1057 GMT - Shares in Fevertree Drinks rise 0.4% after the mixer-maker reported higher annual profit, but said its gross margin fell and cut its earnings forecast due to expected cost increases amid the Ukraine war. The warning took the fizz out of what was otherwise a fairly upbeat set of results, financial-services firm eToro says. "The reality is that the pain is probably far from over for the tonic maker," eToro says. "Inflation--more specifically, commodity price inflation--is proving persistent and there's little chance of that changing while Russia and Ukraine, two key commodity exporters, are at war. We've also seen an alarming resurgence in Covid cases in many countries, which may harm sales in pubs and restaurants."

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Centamin Could Face Inflation, Supply-Chain Pressure After 2021 EPS Missed Views

1052 GMT - Centamin's earnings per share for 2021 were 15% below consensus, largely due to a non-cash impairment charge of $35 million related to exploration assets in Burkina Faso, RBC Capital Markets says. Looking forward, the gold miner reaffirmed production and cost guidance for 2022. RBC says it sees potential for inflationary pressures and supply-chain disruptions to put pressure on costs. "Despite inflationary pressures, we believe Centamin is well-suited to benefit from the current macroeconomic backdrop. Our analysis suggests that an increase of 20% in both gold prices and costs should expand Ebitda by 23%," the bank says. Shares are down 4.5%.

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

(END) Dow Jones Newswires

03-16-22 0807ET