Pictet WM Forecasts 10-Year UK Gilt Yield at 2.8% by Year-End
0706 GMT - Pictet Wealth Management raises its year-end forecast for the 10-year U.K. gilt yield to 2.8% from 2.0%, taking it above their 2.6% projection for the 10-year U.S. Treasury yield, reflecting inflation concerns, says Renaud-Chatelain, fixed income strategist at the wealth manager, in a research note. "The raised forecast is due to the severity of the inflation problem in the U.K., which will push the BOE [Bank of England] to tighten policy in order to maintain its inflation-fighting credibility," she says. Further upward pressure on U.K. short-term rates could lead the slope of the U.K. 10-to-2-year yield curve to invert further, she says. The 10-year U.K. yield trades 0.4 basis points higher at 1.588%, according to Tradeweb. (emese.bartha@wsj.com)
Companies News:
WPP Buys Ecommerce Consultancy Newcraft to Bolster Digital Commerce Operations
WPP PLC said Thursday that it has bought Netherlands-based ecommerce consultancy Newcraft, strengthening its digital commerce capabilities.
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Serco Acquires Immigration Services Provider ORS for up to $45.1 Mln
Serco Group PLC said Thursday that it has acquired ORS, a Swiss-based provider of immigration services in several European countries, for a total consideration of up to 44 million Swiss francs ($45.1 million).
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Barclays Sells Remaining Absa Group Shares for $622.6 Mln
Barclays PLC said Thursday that it has sold 63 million shares in Absa Group Ltd. for 169.0 South African Rand a share, raising ZAR10.66 billion ($622.6 million) and increasing its CET1 ratio by four basis points.
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Sportech Swung to a 1H Pretax Loss, But Revenue Grew
Sportech PLC reported on Thursday a swing to a pretax loss for the first half of 2022, but said that it has no debt and that online revenue grew in the period.
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Reckitt Benckiser CEO Laxman Narasimhan to Step Down
Reckitt Benckiser Group PLC said Thursday that Chief Executive Officer Laxman Narasimhan has decided to step down with effect from Sept. 30.
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Kainos Group Set to Close FY 2023 In Line with Market Views
Kainos Group PLC said Thursday that its performance since the start of fiscal 2023 has continued to see growth across its divisions and the board now expects to close the year in line with market forecasts.
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Jet2's Summer on Sale Seat Capacity 14% Higher Than in 2019; On Track to Meet Views
Jet2 PLC said Thursday that its on sale seat capacity for the summer season was around 14% higher than in summer 2019, and that it was on track to meet fiscal 2023 market expectations for profit before foreign exchange revaluations and taxation.
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STM Group Sees Lower 1H Revenue, Ebitda; Appoints New Nonexecutive Chairman
STM Group PLC said Thursday that it expects to report lower first-half revenue and Ebitda on year due to slower than anticipated new business, and that it has appointed Nigel Birrell as nonexecutive chairman with immediate effect.
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Power Metal Resources Granted Exploration License for Australia's Wilan Project
Power Metal Resources PLC said Thursday that it has been granted an exploration license for the Anna Creek area, named the Wilan project, in Australia.
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Directa Plus Sees 1H Revenue Rising 39%; 2022 Revenue Growth Exceeding 40%
Directa Plus PLC said Thursday that it expects to report a 39% rise in first-half revenue, driven by a strong performance across all of its verticals, and expects to deliver revenue growth above 40% for 2022.
Market Talk:
Reckitt CEO Departure Seen as Disappointing
0707 GMT - Reckitt Benckiser CEO Laxman Narasimhan's decision to step down is disappointing given the improvements that he was making in the company, RBC Capital Markets analysts James Edwardes Jones and Emma Letheren say in a research note. Mr. Narasimhan's current replacement, ex-CEO of British American Tobacco Nicandro Durante, doesn't seem well placed at the leadership of a company focused on consumer health, they say. However, Mr. Durante is likely to be more of an interim CEO as the board selects the future leadership, the Canadian bank's analysts say. "Either way, whoever is selected will be key to whether Reckitt continues its positive transformation," they say. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
09-01-22 0323ET
