Sterling Expected to See Limited Gains if BOE Lifts Rates

1228 GMT - Sterling could rise if the Bank of England raises interest rates on Thursday but it won't strengthen as much as it did after December's rate increase, Bank of America says. "The U.K. rates market is priced for a February rate hike which is in contrast to December (which is 50/50 at best)," BofA analysts say. Short sellers pared bets against sterling after December's meeting, leaving positioning more balanced, and there is unlikely to be a similar position-induced rally for the currency this time, they say. The BOE also has less leeway than the Federal Reserve to sound "hawkish" as high U.K. inflation is driven by supply chain issues whereas U.S. inflation is lifted by strong demand, they say. 


 
Companies News:

Tandem Group Expects 2021 Revenue Rise; Reports Slow Start to 2022

Tandem Group PLC said on Monday that it expects 2021 revenue to rise, and that 2022 has started more slowly as some customers have delayed orders into future months.

---

MetalNRG Begins Legal Proceedings Against Former JV Partner, Director

MetalNRG PLC said Monday that it has begun legal proceedings against former joint-venture partner BritEnergy Holdings LLP, BritNRG Ltd. and former director Pierpaolo Rocco to recover money it paid in 2021.

---

Faron Pharmaceuticals Appoints Juho Jalkanen as COO

Faron Pharmaceuticals Oyj said Monday that it has appointed Juho Jalkanen as chief operating officer.

---

Vector Capital Expects 2021 Revenue Rise

Vector Capital PLC said Monday that it expects 2021 revenue to rise, and that it will be ahead of market expectations.

---

Future Metals Appoints Jardee Kininmonth as CEO

Future Metals NL said Monday that it has appointed Jardee Kininmonth as chief executive officer and that Executive Chairman Greg Bandy has retired from the board.

---

Sirius Real Estate Names New CFO; Current CFO Takes On Investment Role

Sirius Real Estate Ltd. said Monday it has appointed Diarmuid Kelly as its new chief financial officer, with current CFO Alistair Marks taking on the new role of chief investment officer.

---

Amala Foods Warns of Potential Hit to Growth Rate After Weak 1H

Amala Foods PLC said Monday that it didn't reach breakeven in the first half of fiscal 2022 ended Sept. 30, and that the inability to attract talent to the group could hurt its rate of growth.

---

Vodafone May Need to Consider Takeovers or Disposals After Cevian Buys Stake, the Times Reports

--Vodafone Group PLC may have to make takeovers or disposals after activist investor Cevian took a stake in the FTSE 100 telecoms company, the Times of London reports

---

Barratt Developments Acquires Gladman Developments for GBP250 Mln

Barratt Developments PLC said Monday that it has acquired land promoter Gladman Developments Ltd. for 250 million pounds ($335.2 million) on a debt-free, cash-free basis.

---

Amala Shares Rise on Potential Sale

Shares in Amala Foods PLC rose on Monday after it said that it has received unsolicited approaches for the company that would result in a 'see through' valuation for shareholders that is materially ahead of its current market capitalization.

---

MC Mining Mulls Additional Financing; 4Q Coal Production, Sales Slip

MC Mining Ltd. said Monday that it was mulling alternative strategies for raising additional funding, and that coal production and sales at its South African metallurgical and thermal coal mine slipped in the fourth quarter. 


 
Market Talk:

Ryanair's Longer-Term Pricing Could Benefit From Lower Capacity, Pent-Up Demand

1302 GMT - Given that Ryanair's comparative period was marred by some of the tightest Covid-19 restrictions, it was always likely that 3Q results would show strong growth, Russ Mould at AJ Bell says. Still, the airline's numbers aren't as good as they could have been due to Omicron, Mould says. However, its longer-term pricing picture could be more favorable given the market's diminished capacity and likely pent-up travel demand for summer, he says. While Ryanair has made no secret of short-term Covid-19 risks, with one of the strongest balance sheets in the industry investors can at least be confident that "it can steer a flight path through any turbulence," Mould says.

---

BOE Unlikely to Tighten Monetary Policy as Quickly as Fed, PIMCO Says

1220 GMT - The Bank of England is unlikely to tighten monetary policy as quickly as the Federal Reserve, PIMCO says. BOE's future policy path will largely depend on inflation and wage developments. The fund manager expects core inflation to peak in the first quarter at close to around 5% and rate-setters to lift the bank rate to over 1.0% by year end but still below market pricing of around 1.5%. It sees, however, greater inflationary risks in the U.S., given its stronger policy response to the pandemic fallout. Yet "if the Fed speeds up its hiking pace we would expect the BoE to up its pace too," says PIMCO's portfolio manager Peder Beck-Friis.(

---

Cevian's Interest in Vodafone Has Numerous Positives, Jefferies Says

1217 GMT - Cevian's reported interest in Vodafone has several positives, including pressuring management on consolidation and tower deal commitments, bringing a new focus to operational priorities and clarity on decisions for underperforming assets, Jefferies says. The most saleable of Vodafone's European assets is the VodafoneZiggo joint venture, which operates in a benign three-player market, the U.S bank says. Jefferies has a buy rating on the stock with a target price of 150 pence. Shares in Vodafone trade up 3.4% at 131.90 pence.

---

BOE Is Unlikely to Reinvest March, July, September 2022 Gilt Holdings

1215 GMT - Bank of England officials are set to announce a 25 basis point rate rise on Thursday, putting an end to gilt reinvestments, Pimco says. "We expect the BoE to hike by +25bps, which is fully priced in the market, and stop quantitative-easing reinvestments," Peder Beck-Friis, portfolio manager at Pimco, says. This would mean the BOE's holdings in March 2022, July 2022 and September 2022 gilts aren't reinvested, he adds. The rate increase would take the bank rate to 0.5%. The BOE holds GBP875 billion in gilts and GBP20 billion of investment-grade sterling corporate bonds.

---

Investors Short Stocks to Cash In on Brexit, Virus Woe

1201 GMT - Investors are looking to profit from turbulence caused by coronavirus and the U.K.'s EU exit by shorting stocks, exchange-traded product provider GraniteShares says. On Tuesday, Cineworld was the most shorted U.K.-listed company, with some 8.8% of shares on loan, followed by gold miner Petropavlovsk, developer Hammerson and retailer AO World, GraniteShares says. Meanwhile, mobile-phone group Vodafone--reportedly facing potential activist-investor pressure for a shake-up--is the 23rd most-shorted stock among shares tracked by GraniteShares ETPs. Despite market optimism, Brexit and coronavirus concerns are a cause for caution, GraniteShares says. "There remain potential opportunities for sophisticated investors seeking to take advantage of price declines on specific stocks and increasingly they're looking to do so through shorting," GraniteShares Chief Executive Will Rhind says.

---

Inspired Energy Looks Set for Growth Ahead of Strong Recovery

1150 GMT - Inspired Energy reported a robust update for 2021, confirming it has recovered from the coronavirus pandemic interruption and its new strategic focus has driven revenue ahead of expectations, Shore Capital says. As the U.K.-based energy consultancy's new operating structure becomes established, investors should expect the effect of positive operational leverage to drive profit growth potential, Shore says, raising its 2022 revenue forecasts by 10% to GBP73 million. Inspired's recent acquisitions are integrating to plan and with market conditions normalizing, the outlook for a return to strong profit growth is positive, the investment group says. Shore has Inspired as a house stock.

---

Cevian Talking to Vodafone About Consolidation, Sales and Buybacks After Taking a Stake, UBS Says

1137 GMT - Cevian has been in talks with Vodafone about improving performance and value-boosting options such as consolidation in key markets, sales and buybacks, UBS says after the Swedish activist investor reportedly took a stake in the U.K.-listed telecoms company. The Swiss bank says Vodafone has been transparent that it was looking to be active on M&A, with movement in Italy and the U.K. highlighted. M&A should be easier after the European Court of Justice rules on the Three-O2 case, UBS notes, adding that it thinks visibility on the case is likely from the third quarter onward. UBS has a buy rating on the stock with a target price of 157 pence. Vodafone shares trade up 3.4% at 131.94 pence.


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

(END) Dow Jones Newswires

01-31-22 0827ET