GBP/USD Could Stabilize as Implied Volatility Falls

GBP/USD Could Stabilize as Implied Volatility Falls

1025 GMT - The cost of insuring against losses related to big swings in sterling against the dollar in the options market, as measured by implied volatility, has fallen and this points to more stability in the exchange rate, ING says. "Slightly better growth prospects, sticky inflation and some further monetary tightening are the story across the U.S., the eurozone and the U.K. at the moment--suggesting bilateral FX rates do not need to move too much," ING analyst Chris Turner says in a note. That has seen three-month GBP/USD implied volatility drift under 10%, he says. Three-month implied volatility is last around 9.56%, a three-week low, according to Refinitiv. GBP/USD rises 0.1% to 1.2025. ([e-mail])

Companies News: 

CVS Group 1H Pretax Profit Rose on Demand, Sees FY 2023 in Line With Views

CVS Group PLC said Friday that pretax profit for the first half of fiscal 2023 rose, driven by a continued robust demand, and that performance for the full year is in line with market expectations.

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Cineworld Has Received Proposals From a Number of Potential Counter Parties

Cineworld Group PLC said Friday that it has received a number of proposals from potential parties to buy some or all of its business, but non involve an all-cash bid for the entire company.

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Jupiter Fund Management 2022 Pretax Profit Fell on Market Backdrop

Jupiter Fund Management PLC on Friday posted a drop in 2022 pretax profit due to the impact of challenging macroeconomic conditions on market valuations and investor sentiment, and declared a lower dividend.

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Trustpilot Appoints Zillah Byng-Thorne as Chairwoman

Trustpilot Group PLC said Friday that current Chair designate and independent nonexecutive director Zillah Byng-Thorne will replace Tim Weller as chairperson of the group with effect from April 3.

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Circle Property to Dispose of Remaining Assets, Proposes Delisting

Circle Property PLC said Friday that it intends to delist from London's AIM market as it has agreed to sell its largest remaining asset for around 12.3 million pounds ($14.8 million) in cash which it will return to shareholders.

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Kin & Carta Sees FY 2023 Below Market Views Amid Weaker Consumer Spending

Kin & Carta PLC said Friday that it expects fiscal 2023 performance to be below market expectations given the affect of macro headwinds and more cautionary consumer spending.

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Avation Shares Rise on Expected FY 2023 Beat

Shares of Avation PLC rose 9.5% upon market opening on Friday after the company said that it expects results for year ending June 30 to be significantly ahead of market expectations.

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Cleantech Lithium Eyes Australia Listing

Cleantech Lithium PLC on Friday said it intends to list on Australia's stock exchange and expects trading to start by the third quarter.

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IAG Swung to 2022 Net Profit as Covid-19 Restrictions Eased; Sees Further Recovery in 2023 -- Update

International Consolidated Airlines Group SA said Friday that it experienced a strong recovery in its core markets as the restrictions stemming from the pandemic lifted, and that despite the macro uncertainty and inflation it expects a further recovery in profits in 2023.

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MJ Hudson Granted GBP1.5 Mln Loan

MJ Hudson Group PLC on Friday said it reached an agreement for a 1.5 million-pound ($1.8 million) loan to provide it with working capital during its current sales process.

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Cora Gold to Raise $19.8 Mln, Surpassing Target

Cora Gold Ltd. said Friday that it will raise $19.8 million through an equity fundraising and convertible loan notes, surpassing its $19.6 million target.

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IOG's Fiona MacAulay To Retire as Chair, Esa Ikaheimonen Named As Interim Replacement

IOG PLC on Friday said Chair Fiona MacAulay has decided not to stand for reelection at the company's annual general meeting and that Esa Ikaheimonen will replace her on an interim basis.

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Katoro Gold Seeks Shareholder Approval to Issue Shares for Fundraises

Katoro Gold PLC said Friday that is looking for shareholder approval in order to increase its authorities to issue and allot shares.

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Cineworld Shares Dive After Takeover Proposal Failure

Shares of Cineworld Group PLC fell as much as 33% on Friday after the company said that it has received a umber of proposals from potential parties to buy some or all of its business but none involve an all-cash bid for the entire company, leaving shareholders empty handed.

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FIH Group Chairman Robin Williams to Step Down

FIH Group PLC said Friday that Chairman Robin Williams will step down after the annual general meeting in September because of increasing responsibilities on other company boards.

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ASA International's Karin Kersten to Replace Dirk Brouwer as CEO

ASA International Group PLC said Friday Chief Executive Officer and Co-founder Dirk Brouwer is stepping down from his role for personal reasons and that it has appointed Karin Kersten to replace him.

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London & Associated Properties Names John Heller New Chairman

London & Associated Properties PLC said Friday that it has appointed Chief Executive John Heller as chairman with immediate effect.

 
Market Talk: 

IAG's 2023 Bottom Line Could Be Affected by Energy Prices Rising Again

0932 GMT - International Consolidated Airlines' 2022 recovery is so strong that 2021 comparatives feel as though they belong to another company, eToro analyst Mark Crouch says in a note. The company is closer to operating at its prepandemic capacity than at any time since then, and despite the current stretch in household finances, pent-up travel demand could potentially see passenger numbers recover their prepandemic levels next year, Crouch says. "One area of concern last year was the sharp rise in the price of jet fuel, although prices have softened again," he says. "If prices start to rise once more, it will likely be the biggest drag on IAG's bottom line this year." ([e-mail])

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Jupiter Fund Management 4Q Inflows After Years of Outflows Shows Improvement

0947 GMT - Jupiter Fund Management's fourth-quarter improvement with positive flows lifts the picture after years of outflows, Peel Hunt says in a note after the fund manager's 2022 results beat expectations. "It remains early days in the new CEO's plans to turn Jupiter around, but 4Q was more positive after many years of net outflows," analysts at the brokerage say, adding that it may be too soon to say definitively that flows have turned the corner. They flag that the stock, which they rate hold, isn't expensive. Shares rise 11% at 148.8 pence. ([e-mail])

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IAG Drops as Investors Eye Concerns Despite Upbeat FY

0953 GMT - International Consolidated Airlines shares top the FTSE 100 fallers, down 4% amid investor caution despite the airline group's swing to net profit in 2022. The stock has had a strong run and while the latest results were encouraging, there are areas of concern for investors, AJ Bell says. "As a legacy of Covid, debt is highly elevated," Bell's investment director Russ Mould writes. "This could make the market uncomfortable, particularly if there is any indication it's preventing IAG from making necessary investments in its business. The pledge to return to pre-Covid levels of profit in the next few years gives investors something to look forward to, but also demands some patience." ([e-mail])

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Cineworld Played the Wrong Hand, AJ Bell Says

0955 GMT - Cineworld Group has watched too many gambling films and played the wrong hand, AJ Bell says in a market comment after the cinema company said it received expressions of interest for parts of its business. "Selling subsidiaries doesn't mean it will be suddenly swimming in cash. Any interested party in Cineworld's assets knows that the cinema group is desperate and so they are likely to pitch any offers at a low level," investment director Russ Mould says, adding that the group has paid the price for being too aggressive for its growth ambitions and its shareholders are likely to be left with nothing. Shares shed 21.7% at 3.1 pence. ([e-mail])

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IAG's Pledge to Return to Profit Might Entice Investors But Demands Patience

1016 GMT - Despite International Consolidated Airlines' strong 2022 results, there are areas of concern for investors, AJ Bell analyst Russ Mould says in a note. Debt is high and this could make the market uncomfortable should it prevent it from making necessary investments, Mould says. Moreover the Air Europa purchase implies it isn't too constrained despite hefty borrowings and its brand power and resilience should leave it well placed to benefit from a shake-up in the sector as less durable rivals are grounded, he says. "The pledge to return to pre-Covid-19 levels of profit in the next few years gives investors something to look forward to but also demands some patience - and there is no dividend to reward shareholders for sticking around," he says. ([e-mail])

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Jupiter Fund Management FY Results Topped Expectations

1020 GMT - Jupiter Fund Management's assets under management, fourth-quarter flows, performance fees and underlying profits were ahead of estimates, Panmure Gordon says following the fund manager's annual results. "The new chief executive's statement is sensible enough: get more efficient, try to make use of already established costs in distribution, sort out the product offering," Panmure analyst Rae Maile says in a note. "A return to a simpler, more profitable business is what's required and it appears that finally there's a CEO trying to achieve that." Shares rise 12%. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

02-24-23 0544ET