Pound Edges Up on Reports BOE Could Extend Bond Purchases Despite Bailey Remarks

Pound Edges Up on Reports BOE Could Extend Bond Purchases Despite Bailey Saying Otherwise

0740 GMT - Sterling rises after reports the Bank of England has signalled privately to banks that it could extend its emergency bond-buying program even as Governor Andrew Bailey said the intervention would end on Friday as planned. Bailey said late Tuesday that pension fund managers should finish rebalancing their positions by Friday, sending the pound lower. Sterling has since recovered as the Financial Times reported that representatives from the BOE informed some lenders that it was prepared to extend the facility. Such a U-turn would "deal another blow to the central bank's credibility, as well as the credibility of Bailey himself," CMC Markets analyst Michael Hewson writes. GBP/USD rises 0.1% to 1.0979. ([e-mail])

 
Companies News: 

PageGroup 3Q Gross Profit Rose, Sees 2022 Operating Profit in Line With Views

PageGroup PLC said Wednesday that gross profit for the third quarter of 2022 rose 14%, and that it expects operating profit for the full year to be in line with market views.

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Barratt Developments' Early FY23 Forward Sales Slip, Sees Full Year In-Line

Barratt Developments PLC said Wednesday that total forward sales value fell 8.6% at the start of fiscal 2023, though it still expects to meet market expectations for the full year.

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Darktrace Says Sales Momentum Continued in 1Q; Backs FY 2023 Guidance

Darktrace PLC said Wednesday that continuing sales momentum drove its performance in the first quarter of fiscal 2023, and backed its guidance for the year.

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QinetiQ Sees FY 2023 in Line With Views Given Robust Order Intake

QinetiQ Group PLC said Wednesday that it is confident about delivering a performance in line with the board's expectations for fiscal 2023, given that most of the full-year revenue is under contract.

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Kin & Carta FY 2022 Pretax Loss Widens on Higher Costs; Revenue Rose

Kin & Carta PLC said Wednesday that its fiscal 2022 pretax loss widened despite higher revenue, on increased costs and lease-related charges.

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M.J. Gleeson Chairman Dermot Gleeson to Step Down After 28 Years in Role

M.J. Gleeson PLC said Wednesday that Chairman Dermot Gleeson will step down with effect from Dec. 31, to be replaced by Chief Executive James Thomson.

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Hostelworld Sees 2022's Ebitda Modestly Positive

Hostelworld Group PLC said Wednesday that it expected to end 2022 with a modestly positive Ebitda and with a stronger cash position than originally expected, and that net revenue in September was above 2019's levels.

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Thruvision Sees 1H Revenue Rising; Has Strong Backlog of Orders

Thruvision Group PLC said Wednesday that it expects first-half fiscal 2023 revenue to increase, and that it expects to deliver a strong backlog of orders in the second half.

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Columbia Threadneedle freezes UK property fund as cash balance dwindles -- Financial News

Cash in the fund at a level where future redemption requests cannot be met 'until a further orderly sale of assets has completed'

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Angling Direct Sees FY 2023 Below Expectations Amid Deteriorating Consumer Outlook

Angling Direct PLC shares fell 17% on Wednesday early trading after the company said that it is downgrading its forecast for fiscal 2023 given the deteriorating consumer outlook, and that pretax profit for the first half fell on higher costs.

 
Market Talk: 

Pound's Volatility Could Rise on Uncertainty Over BOE Intervention

0742 GMT - Sterling faces further volatility on Wednesday following contradictory reports about whether the Bank of England will end its emergency bond-buying program on Friday as planned, ING says. Bailey on late Tuesday said the scheme would end Friday but the Financial Times reported that the BOE signalled privately to lenders that it could extend the scheme. It appears that an extension to the program is "holding the key to averting another sharp sell-off in the gilt market and the pound," ING analyst Francesco Pesole says in a note. GBP/USD looks set to drop to 1.00-1.05 area by year-end, from 1.0977 currently, he says. ([e-mail])

Barratt Developments Looks Cautious Ahead of Potential Downturn

0724 GMT - Barratt Developments has delivered a cautious trading update, reporting weaker sales rates but what appears to be still robust pricing, Jefferies says. The house builder's management is still comfortable with the fiscal 2023 consensus, but market views have been edging down in recent weeks, and while the nuances of business performance in the last weeks will be important for sentiment its much too early for clarity on what the downturn will look like, Jefferies analysts say in a research note. "Barratt [shares are] cheap, but with news flow likely to continue to be negative, for us its too early to bottom-fish on valuation," the U.S. bank says. Jefferies retains its hold rating on the stock with a 469.0-pence price target. Shares are down 5.4% at 324.6 pence. ([e-mail])

Barratt Developments Is Meeting Expectations, but Notes Slowing Demand

0720 GMT - Barratt Developments' early fiscal 2023 update supports expectations for the full year, but highlights a slowdown in demand, Citi says. The house builder's slowdown in sales rate, in-line with the tighter mortgage market, looks broadly as expected while the current order book continues to offer strong near-term visibility, Citi analyst Ami Galla says in a research note. "We believe the slowdown in land acquisitions reflects management's caution on the deteriorating demand outlook and looks prudent in the light of concerns of a severe recession and weaker house prices," the U.S. bank says. Citi retains its buy rating and 757 pence price target on the stock. Shares are down 5.3% at 324.9 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

10-12-22 0359ET