Pound, Gilts Seen Lifted by Johnson Quitting UK Leadership Race
0840 GMT - News that former U.K. prime minister Boris Johnson has pulled out of the Conservative Party leadership race has provided a modest boost to sterling and U.K government bonds, or gilts, ING says. Former Chancellor of the Exchequer Rishi Sunak is now the favorite to become prime minister, with Jeremy Hunt as Chancellor. "The market considers the Sunak/Hunt ticket as most able to reverse some of the damage done to the UK's fiscal credibility since September," ING analyst Chris Turner tells Dow Jones Newswires. GBP/USD trades at 1.1337, EUR/GBP is at 0.8670 and the 10-year gilt yield is 3.929%. At Friday's close GBP/USD was at 1.1305, EUR/GBP was 0.8724 and the 10-year gilt yield was 4.088%. (renae.dyer@wsj.com)
Companies News:
Pearson Made Progress in 2022 to Date; Sees Full-year Meeting Market Views
Pearson PLC said Monday that it has made strong progress in the first nine months of the year, and that it expects to meet the full-year adjusted operating profit market consensus.
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Auto Trader Sells Webzone for EUR30 Mln
Auto Trader Group PLC said Monday that it has sold Webzone Ltd. for 30 million euros ($29.6 million) as the company focuses on its U.K. businesses.
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Helical Met or Beat 1H Targets; Collects Most of Rent Due
Helical PLC said Monday that it has met or exceeded its development and leasing targets for the first half of fiscal 2023, and has collected most of the rent due.
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Pendragon Gets UK Takeover Panel Extension to Hedin Mobility Deadline
Pendragon PLC said Monday that the U.K. Takeover Panel has agreed to extend the deadline for Hedin Mobility Group AB to either make an offer for the company or walk away until Nov. 21 so that the parties can continue talks.
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Benchmark Holdings Expects FY 2022 Adjusted Ebitda Ahead of Consensus on Good 4Q Performance
Benchmark Holdings PLC said Monday that it expects adjusted Ebitda for fiscal 2022 to be ahead of consensus expectations due to a better-than-expected performance across its business areas in the fourth quarter.
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Kavango Resources Raises GBP3 Mln to Fund Exploration Costs
Kavango Resources PLC said Monday that it has raised 3 million pounds ($3.4 million) via a share placing and subscription, and will use the money towards the costs of its exploration program and for working capital.
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Fulcrum Utility Expects 1H Revenue Fall, Swing to Ebitda Loss
Fulcrum Utility Services Ltd. said Monday that it expects to report a fall in revenue and a swing to an adjusted earnings loss for the first half of fiscal 2023 as it has experienced significant challenges from energy and wider market conditions.
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Supreme Says Retail Sales Recovery Point to Temporary Nature of Lighting Category Slowdown
Supreme PLC said Monday that the early indications of recovery seen in September and October's retail sales reaffirmed the temporary nature of the slowdown seen in the lighting category's market during the first half of fiscal 2023.
Market Talk:
Sterling Falls After UK PMI Data
0856 GMT - Sterling falls after a key survey showed U.K. services and manufacturing activity contracted by more than forecast in October. The S&P U.K. composite purchasing managers' index, which measures services and manufacturing activity, fell to 47.2 in October from 49.1 in September, compared with the 48.7 reading expected by analysts in a WSJ survey. A level below 50 signals a contraction. "The heightened political and economic uncertainty has caused business activity to fall at a rate not seen since the global financial crisis in 2009 if pandemic lockdown months are excluded," S&P economist Chris Williamson says in the survey's press release. GBP/USD falls to 1.1306 after the survey from 1.1335 beforehand and EUR/GBP rises to 0.8690 from 0.8674 beforehand. (renae.dyer@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
10-24-22 0536ET
