Goldman Sachs Expects Deeper UK Recession, Lowers BOE Forecasts

0921 GMT - Goldman Sachs expects "a more significant recession" in the U.K. as it slashes economic forecasts, with GDP anticipated to contract by 1.0% in 2023, versus a contraction of 0.4% expected previously. "Folding in weaker growth momentum, significantly tighter financial conditions, and the higher corporation tax from next April [following last week's policy reversal], we downgrade our U.K. growth outlook further," the bank's analysts say in a note. Given softer growth and sterling's appreciation, Goldman Sachs lowers itscore inflation forecast to 3.1% by end-2023, from 3.3% previously. This alleviates pressure on the Bank of England and GS now forecasts a terminal rate of 4.75%, versus 5.0% previously, with 75 basis-point rate rises in November and December. (jessica.fleetham@wsj.com)


 
Companies News: 

ASOS to amend terms of GBP350 Mln Facility

ASOS PLC said on Saturday that it is in the final stages of agreeing with lenders to amend the terms of its 350 million pounds ($391.4 million) borrowing facility.

---

Endeavour Mining Launches Construction of Lafigue Project in Ivory Coast

Endeavour Mining PLC said Monday that it has launched the construction of the Lafigue project in the Ivory Coast after the definitive feasibility study confirmed its potential to become a cornerstone asset.

---

Hargreaves Lansdown CEO to Retire

Hargreaves Lansdown PLC said Monday that Chief Executive Chris Hill has decided to retire and that he will remain in the role until his successor joins.

---

GSK Single-Vial Meningitis Treatment Approved by U.S. FDA

GSK PLC said Monday that the U.S. Food and Drug Administration has approved the single-vial presentation of its Menveo product to treat meningitis.

---

Hargreaves Lansdown 1Q Assets Under Administration Fell; Raises FY 2023 Views

Hargreaves Lansdown PLC said Monday that assets under administration fell during the first quarter of fiscal 2023, and that it rose its revenue margin guidance to reflect an increase in net interest margins.

---

Audioboom Outpaces Wider Market With 9-Month Revenue Up 44% on Year

Audioboom Group PLC said Monday that revenue in the first nine months of 2022 outpaced wider market growth, despite global economic headwinds hitting advertising demand in the third quarter.

---

Eve Sleep Calls in Administrators

Eve Sleep PLC said Monday that it has appointed administrators to the company, as it has been unable to agree to a formal sale of the business or to any fundraising.

---

City of London Investment Group 1Q Funds Under Management Fell on Weaker Conditions

City of London Investment Group PLC said Monday that funds under management declined in the first quarter of the fiscal year on wider discounts amid weak market conditions.

---

Global Ports Holding Expects Strong Cruise Call Reservations for 2023

Global Ports Holding PLC said Monday that current cruise call reservations for 2023 stand at 4,538, implying it could see passenger volumes exceeding 11 million, assuming prepandemic occupancy rates.

---

Mosman Oil & Gas Sees Stanley Project Output Increase, Shares Raise

Mosman Oil & Gas Ltd. shares rose on Monday after the company said that it expects a stronger production in the second quarter of fiscal 2023 driven by workovers in its Stanley project in the U.S.

---

RM PLC Sees FY 2022 Operating Profit Missing Market Views; Shares Fall

Shares in RM PLC fell Monday after the company said that operating profit for fiscal 2022 is expected to be significantly lower than market expectations due to IT-related challenges, though revenue remains in line.

---

ADM Energy Shares Rise After Raising GBP725,000; CEO to Step Down

Shares in ADM Energy PLC jumped 41% on Monday after it said that it has raised around 725,000 pounds ($810,767) through a subscription and loan, and that Osa Okhomina will step down as chief executive.

---

Alphawave IP 3Q Bookings Jump on Year; Sees Strong 4Q

Alphawave IP Group PLC said Monday that bookings for the third quarter jumped significantly on year and that it expects continued customer traction during the last quarter of the year.

---

Made.com Shares Rise Amid Strong Interest in Formal Sale Process

Shares in Made.com Group PLC rose Monday after the company said that it has received a number of non-binding indicative proposals as part of its formal sale process, and that it invited a select number of them to progress toward firm offers.

---

Victoria PLC Performed in Line With Views in 1H

Victoria PLC said Monday that it has continued to perform well during the first half of fiscal 2023, in line with full-year revenue and Ebitda market forecasts.

---

Centralnic to Beat 2022 Market Views as Organic Growth Accelerates; Shares Raise

Centralnic Group PLC shares rose on Monday after the group said that it expects to materially exceed market expectations for the full year driven by a robust organic growth.

---

Woodbois 3Q Revenue Rose on Increased Sawn Timber, Veneer Production

Woodbois Ltd. said Monday that revenue rose on year in its third quarter on higher quarterly production of sawn timber and veneer.

---

Hercules Site Services Expects FY 2022 Revenue to Grow in Line With Market Views

Hercules Site Services PLC said Monday that it expects fiscal 2022 revenue to meet market expectations, with 38% growth on year.


 
Market Talk: 

Hargreaves Lansdown Falls After 1Q Assets Under Management Drop

0929 GMT - Hargreaves Lansdown drops 7% after the FTSE 100-listed financial-services firm reported lower first-quarter assets under administration and said Chief Executive Chris Hill had decided to retire. The fall in AuM was less than expected, new client addition held up more successfully, though with slower new business flows, revenue was much stronger and guidance for increased revenue margins was helpful, Panmure Gordon says. "The shares have de-rated materially, the market apparently unconvinced by the strategy [Hill] has laid out," Panmure analysts say in a note. "Whether a change of CEO vindicates or changes that strategy is for another day, but the current rating hardly reflects Hargreaves's market-leading position. Buy." (philip.waller@wsj.com)

UK Inflation Expected to Remain in Double Digits for the Rest of 2022, 1Q 2023

0922 GMT - Deutsche Bank expects U.K. inflation to remain strong in September. Headline inflation is projected to return to double digits and the German bank expects core inflation to edge up to 6.4% year-on-year. "While generally inflation risks are tilted to the upside, we see them as broadly balanced in September," Deutsche Bank's economist Sanjay Raja says in a note. Looking ahead, DB continues to expect inflation to remain over 10% year-on-year for the rest of the year, and into most of the first quarter of 2023. U.K. Inflation is then expected to start dropping from 2Q onward, especially with demand losing momentum, taking the annual rate of inflation down to around 4.75% in 4Q. (maria.martinez@wsj.com)

Gilt Yields Fall Sharply as Government Expected to Announce New Fiscal Measures

0922 GMT - Gilt yields drop sharply as investors welcome prospects of new fiscal measures expected to be announced on Monday by new Chancellor of the Exchequer Jeremy Hunt, including likely spending cuts and a reversal of unfunded tax cuts, says AJ Bell investment director Russ Mould in a note. "It seems the government has bought itself some breathing room with the financial markets. This is particularly reassuring given the Bank of England has, officially at least, concluded its intervention in the gilt market," says Mould in a note. The 10-year gilt yield falls 27 basis points to 4.041% according to Tradeweb. (miriam.mukuru@wsj.com)


Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

10-17-22 0552ET