Omicron Weighs on Already Struggling UK Economy
1002 GMT - Economic growth slowed and the U.K.'s current account deficit widened in the third quarter, showing that the economy was struggling to recover even before the emergence of the Omicron variant of Covid-19, says Gabriella Dickens, senior U.K. economist at Pantheon Macroeconomics. Official data showed the current account deficit widened to GBP24.4 billion in the third quarter, compared to a revised deficit of GBP13.5B in 2Q, wider than the previous estimate of GBP8.6 billion. The latest estimate for third-quarter was revised down to 1.1%, lower than the previous estimate of 1.3% and consensus forecasts for an unchanged reading. Now, the new Omicron variant is hitting the economy hard, Dickens says, adding that Pantheonexpects quarter-over-quarter GDP growth to drop to 0.6% in the fourth quarter and to 0.0% in the first quarter of next year. (lorena.ruibal@wsj.com)
Companies News:
Syncona Shares Rise After Novartis Agrees to Buy Portfolio Company
Syncona Ltd. shares rose Wednesday after it said Novartis AG has agreed to acquire its portfolio company Gyroscope Therapeutics Holdings PLC for up to $1.5 billion.
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U.K. Watchdog Says Taylor Wimpey Agreed to Remove Terms for Doubling Ground Rent Clauses
The Competition and Markets Authority said Wednesday that home builder Taylor Wimpey PLC is removing doubling ground rent terms from leasehold contracts after receiving enforcement action in September 2020.
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Pennon Says U.K. Competition Regulator to Pursue Phase 2 Review on Deal for Bristol Water
Pennon Group PLC said Wednesday that the U.K. Competition and Markets Authority has confirmed its intention to pursue a Phase 2 merger review regarding the company's acquisition of Bristol Water Holdings UK Ltd.
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Land Securities Buys Additional 25% Stake in Bluewater Shopping Mall for GBP172M
Land Securities Group PLC said Wednesday it has acquired an additional 25% stake in shopping mall Bluewater for 172 million pounds ($228.2 million).
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Parsley Box's Shares Fall on Outlook Warning Over Omicron Variant
Shares in Parsley Box Group PLC on Wednesday fell after the company warned about its ability to continue managing customer-service levels due to the effects of the Omicron variant despite also saying that it expects to post growth in its full-year results.
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Anglo American Says De Beers Rough Diamond Sales for 10th Cycle Were $332 Mln
Anglo American PLC said Wednesday that rough diamond sales for De Beers's 10th sales cycle of 2021 were $332 million.
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Croda International to Sell Majority of Performance Technologies and Industrial Chemicals for EUR915 Mln
Croda International PLC said Wednesday that it has signed a definitive agreement with Cargill Velocity Holdings Ltd. to sell the majority of its Performance Technologies and Industrial Chemicals businesses for an enterprise value of 915 million euros ($1.03 billion).
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Good Energy Shares Fall After a Further GBP3 Mln Hit to FY 2021 Is Expected
Shares in Good Energy Group PLC fell Wednesday after the company said it expects a further 3 million-pound ($4.0 million) hit to its fiscal 2021 results due to unfavorable weather conditions.
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K3 Business Technology 2H Performance in Line With Expectations
K3 Business Technology Group PLC said Wednesday that its performance for the second half of fiscal 2021 has been in line with management expectations, boosted by a strong fashion and apparel business.
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Camellia Sees 2021 Underlying Pretax Profit Above Market Views
Camellia PLC said Wednesday that it expects underlying pretax profit for 2021 to be substantially above market expectations due to improved margins for a number of its agricultural businesses and rigorous cost-saving measures.
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Avacta Group Gets CE Mark for Covid-19 Antigen Test; Shares Rise
Shares in Avacta Group PLC rose Wednesday after the company said its Covid-19 antigen lateral flow test has received a CE mark for use as a consumer self-test in the U.K. and the European Union.
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Scotgold Resources FY 2021 Pretax Loss Widened; Ramps Up Production
Scotgold Resources Ltd. said Wednesday its pretax loss for fiscal 2021 doubled, as the company ramps up production at its Cononish gold and silver mine in Scotland.
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Tungsten Corp. Shares Fall as Accel-KKR Exits Takeover Talks
Shares in Tungsten Corp. fell Wednesday after the company said Accel-KKR has confirmed it won't make an offer for the company and that discussions between both parties have now terminated.
Market Talk:
Pound Seen Mildly Supported by Hopes of Improved UK-EU Relations
1057 GMT - Optimism that U.K.-EU relations could improve after Britain's Brexit minister David Frost resigned is positive for sterling but gains will be limited given modest U.K. interest rate rise expectations, MUFG Bank says. Frost's replacement Liz Truss on Tuesday said she wants to "urgently resolve" the dispute over the Northern Ireland protocol and have a "constructive relationship" with the EU. The latest developments reduce the risk of the U.K. triggering Article 16, which would suspend parts of the agreement for the Irish border, MUFG currency analyst Lee Hardman says. "The use of Article 16 could put back no deal risks back on to the table and weaken the pound." GBP/USD rises 0.3% to 1.3304 and EUR/GBP falls 0.2% to 0.8492. (renae.dyer@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
12-22-21 0613ET
