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Pound Likely to Drop Further Despite UK Fiscal Stimulus

09/23/2022 | 04:21am EST

Pound Likely to Drop Further Despite Forthcoming UK Fiscal Stimulus

The pound weakens and is vulnerable to further falls, with any bounce from the announcement of a large fiscal stimulus package--including caps on U.K. energy bills and tax cuts--due on Friday unlikely to be sustained, MUFG analyst Derek Halpenny says. "A combination of fiscal expansion and tighter monetary policy is currency positive," he says in a note. "However, for the pound, that fiscal expansion does not look sustainable while the BOE's tightening lags behind half of the G10 central banks despite the U.K. having the highest inflation across G10," Halpenny says. Sterling falls to $1.1170 against a broadly stronger dollar, its lowest level since 1985, according to FactSet. The BOE raised interest rates by 50 basis points to 2.25% on Thursday. (jessica.fleetham@wsj.com)

 
Companies News: 

Smiths Group FY 2022 Pretax Profit Fell on Higher Costs, Missed Consensus

Smiths Group PLC said Friday that pretax profit for fiscal 2022 fell after booking higher costs, missing consensus, and that strong order books and its leading market positions support sustained momentum.

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Made.com Group Hangs Up 'for Sale' Sign; Withdraws Guidance

Made.com Group PLC said Friday that it has started a formal review of its options, including a sale process, and withdrew its full-year guidance due to a deterioration of trade and the current financial position of the group.

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Crossword Cybersecurity Raises GBP6.3 Mln in Discount Placing

Crossword Cybersecurity PLC said Friday that it has raised 3.6 million pounds ($4.1 million) from an oversubscribed fundraising, which it will use to increase sales and marketing, and for product development, general marketing and working capital purposes.

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TheWorks.co.uk Swung to FY 2022 Pretax Profit; Backs FY 2023 Guidance

TheWorks.co.uk PLC said Friday that it swung to a fiscal 2022 pretax profit as revenue rose significantly, while leaving its fiscal 2023 guidance unchanged, and that it reintroduced dividends.

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B90 Holdings 1H Pretax Loss Narrowed on Website Launch, Acquisition

B90 Holdings PLC said Friday that its first-half pretax loss narrowed as revenue rose on the back of a website launch and an acquisition, and that July and August revenue was in line with the second quarter.

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Amigo CEO to Step Down; CFO Danny Malone Named as Successor

Amigo Holdings PLC said Friday that Chief Executive Gary Jennison is stepping down and will be succeeded by Danny Malone, the company's chief financial officer.

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Colefax Launches Buyback Program of Up to GBP5.4 Mln

Colefax Group PLC said Friday that it is launching a share buyback program of up to 5.4 million pounds ($6.1 million).

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7Digital Group Gets GBP500,000 Loan from Shareholder; Chairman Steps Down

7Digital Group PLC said Friday that it has agreed to a 500,000-pound ($562,700) loan from Magic Investments SA, a significant shareholder represented by Director David Lazarus.

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easyJet Holidays Expects Pretax Profit of More than GBP35 Mln for FY 2022

easyJet PLC said Friday that its holidays business is expected to report a pretax profit of more than 35 million pounds ($39.4 million) in fiscal 2022 and is on track to deliver over GBP100 million of profit in the medium term.

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ScS Group Names John Walden as Nonexecutive Chairman Designate

ScS Group PLC said Friday that John Walden has been appointed the group's nonexecutive chairman designate.

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Revolution Beauty Auditor Won't Sign FY 2022 Report; Sees FY 2023 Results Missing Views

Revolution Beauty Group PLC said Thursday that its auditor BDO LLP has identified a number of serious concerns in its fiscal 2022 audit and is unable to sign the report, and it expects to miss fiscal 2023 market views.

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Tern's Shares Fall on Significantly Widened 1H Loss

Shares in Tern PLC on Friday fell after the company reported a significantly widened loss for the first half of 2022.

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More Acquisitions SPAC Conditionally Agrees on Reverse Takeover of Megasteel

More Acquisitions PLC said Friday that it has agreed on a conditional heads of terms to acquire Megasteel Ltd. in a reverse takeover, valuing Megasteel at between 49.5 million and 63 million pounds ($55.7 million-$70.9 million).

 
Market Talk: 

Smiths Group's FY 2023 Guidance Likely to Be Well Taken by Investors

0722 GMT - Smiths gave a strong set of FY 2022 results with Ebita of GBP417 million ahead of consensus of GBP416 million, analysts at Jefferies say in a note. The engineering group gave a robust guidance for FY 2023 with organic revenue growth in the 4.0% to 4.5% range, the analysts say. "This should be taken well by the street given the macro uncertainty the U.K. Industrials face," they say. Jefferies rates the stock buy and has a 1,740 pence target price. Shares are up 3.1% at 1,516 pence. (anthony.orunagoriainoff@dowjones.com)


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

(END) Dow Jones Newswires

09-23-22 0420ET

Stocks mentioned in the article
ChangeLast1st jan.
7DIGITAL GROUP PLC 0.00% 0.325 Delayed Quote.-30.11%
AMIGO HOLDINGS PLC -6.63% 4.575 Delayed Quote.-18.70%
AUSTRALIAN DOLLAR / BRITISH POUND (AUD/GBP) -0.09% 0.5584 Delayed Quote.3.70%
B90 HOLDINGS PLC 0.00% 3.75 Delayed Quote.-65.12%
CANADIAN DOLLAR / BRITISH POUND (CAD/GBP) -0.19% 0.615218 Delayed Quote.5.97%
COLEFAX GROUP PLC 0.00% 655 Delayed Quote.2.34%
EASYJET PLC -2.57% 382.9 Delayed Quote.-31.13%
EURO / BRITISH POUND (EUR/GBP) -0.04% 0.8636 Delayed Quote.2.92%
INDIAN RUPEE / BRITISH POUND (INR/GBP) -0.30% 0.010226 Delayed Quote.3.22%
SCS GROUP PLC -0.99% 150 Delayed Quote.-34.21%
SMITHS GROUP PLC -0.93% 1596 Delayed Quote.1.04%
TERN PLC 4.88% 10.75 Delayed Quote.-14.00%
THEWORKS.CO.UK PLC 0.00% 35 Delayed Quote.-35.42%
US DOLLAR / BRITISH POUND (USD/GBP) -0.31% 0.834794 Delayed Quote.13.11%
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