Pound's Rise Unlikely to Last Amid Fears Over Fiscal Policy, Growth and Brexit

1115 GMT - Sterling's current gains won't last given market concerns over fiscal policy, weak U.K. economic growth and Brexit risks, Commerzbank says. It is feared that potential expansionary fiscal policy under new U.K. Conservative Party leader Liz Truss will significantly fuel inflation and government debt, Commerzbank currency analyst Thu Lan Nguyen says in a note. Sterling might not benefit if the Bank of England raised interest rates more aggressively to fight inflation as that could deepen a recession, she says. There's also the risk of a U.K.-EU trade war, she says, noting speculation that Truss could suspend the Northern Ireland protocol. GBP/USD rises 0.5% to 1.1574 and EUR/GBP falls 0.5% to a one-week low of 0.8567, according to FactSet. (renae.dyer@wsj.com)


 
Companies News: 

Private equity giant Thoma Bravo hires Inflexion's Irina Hemmers to lead London office -- Financial News

London is the software investor's first base in Europe as it eyes more deals on the continent

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Luceco's Shares Rise on Higher-than-Expected Revenue for 1H

Shares in Luceco PLC on Tuesday rose after the company reported revenue for the first half of 2022 ahead of guidance, and said it expects to close the year in line with current market views.

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Wishbone Gold to Raise GBP2.4 Mln for Australian Exploration Programs

Wishbone Gold PLC said Tuesday that it will raise 2.4 million pounds ($2.8 million) via a private placement, and that it will use the funds to expand its exploration programs at the Red Setter copper and gold project in Australia.

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Burford Capital Appoints Jordan Licht as New CFO

Burford Capital Ltd. said Tuesday that Jordan Licht has been appointed as Chief Financial Officer.

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Amte Power Appoints Alan Hollis as CEO

Amte Power PLC said Tuesday that Alan Hollis has been appointed chief executive officer effective on or around Oct. 31, and that current CEO and founder Kevin Brundish will remain on the board as a strategy director.

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Chaarat Gold Shares Fall on Accident at Kapan Mine, Armenia

Shares of Chaarat Gold Holdings Ltd. fell 11% on Tuesday after the company said that an accident at its Kapan mine in Armenia led to the death of an employee, but its production guidance from the mine remains unchanged.

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Unbound CFO Dan Lampard to Step Down

Unbound Group PLC said Tuesday that Chief Financial Officer Dan Lampard will step down with effect from Oct. 1 to take up the same position in another company.

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DX CEO Resigns; Trading Remains in Line

DX (Group) PLC said Tuesday that Chief Executive Lloyd Dunn has resigned, effective Sept. 6, and that trading remains in line.

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Renold Expects to Meet FY 2023 Market Forecasts After Strong Start to Year

Renold PLC said Tuesday that revenue for the first five months of the new fiscal year has increased 19% and that it expects full-year adjusted operating profit to meet recently increased market forecasts.

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Alumasc FY 2022 Pretax Profit Rose as Revenue Gained on Water-Management Business Performance; Shares Rise

Shares in Alumasc Group PLC rose Tuesday after the company said that pretax profit for fiscal 2022 rose as revenue increased on the water-management division's performance, and that demand remained strong as it entered the new fiscal year.

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PCI-PAL FY 2022 Pretax Loss Narrowed After Rise in Total Annual Contract Value

PCI-PAL PLC said Tuesday that its pretax loss for fiscal 2022 narrowed as it booked a significant increase in total annual contract value.

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DWF Group Appoints New CSO, COO

DWF Group PLC said Tuesday that it has appointed Matthew Doughty as chief growth & strategy officer and Matthew Glenville as chief operating officer, with effect from Friday.

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Gamma Communications 1H Revenue, Pretax Profit Rose After Strong UK, Germany Performance

Gamma Communications PLC said Tuesday that first-half pretax profit and revenue rose after it saw strong performances in the U.K. and Germany.

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WANdisco 1H Pretax Loss Narrowed on Increased Direct Sales

WANdisco PLC on Tuesday reported a narrowed loss for the first half of 2022 driven by larger contract wins and said it is performing in line with market expectations.

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NCC Group FY 2022 Pretax Profit, Revenue Rose on Growth

NCC Group PLC said Tuesday that pretax profit and revenue rose for fiscal 2022 after it booked growth following the successful execution of the company's strategy as demand accelerated.

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Pebble Group 1H Pretax Profit Rose on Increased Revenue Due to Customer Demand Growth

Pebble Group PLC said Tuesday that first-half pretax profit rose as revenue increased on customer demand growth, and that the board expects results for the year to be at least in line with market expectations.

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Headlam Group 1H Pretax Profit Rose on Underlying Profit Uplift

Headlam Group PLC said Tuesday that first-half pretax profit rose on a gain in underlying profit, and that though it remains on track to meet market expectations there remain challenges to the company's performance as operational cost inflation persists.


 
Market Talk: 

Sterling Shows Disconnect With Gilt Yields

1036 GMT - The recent selloff in sterling alongside the rise in yields of U.K. government bonds, or gilts, is unusual, Bank of America says. Sterling is historically rate-sensitive but there has been a big disconnect between the currency and gilt yields in recent weeks, BofA analysts say in a note. "It perhaps portends to some of the broader concerns that we have had with long-term GBP fundamentals: a widening current account deficit and the issues in funding, and increasing strains on government finances against the backdrop of plans for more stimulus," the analysts say. (renae.dyer@wsj.com)

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Berkeley Group's Pricing Power Should Help Mitigate Market Uncertainty

1019 GMT - Berkeley Group's credentials as a best-in-class house builder and property market player were on show in its latest update, displaying a knack for mitigating rising costs by raising prices, AJ Bell says. Berkeley's update suggests its housing quality gives it pricing power in an uncertain market--or, less positively, could imply it hasn't yet felt the full force of rising mortgage costs and cost-of-living pressures on demand, AJ Bell investment director Russ Mould says in a research note. "Assuming [late Chairman Tony] Pidgley's shrewd reading of how the housing market is positioned has been passed on, it will be worth watching the company's words and actions very closely for hints on where we are headed next," the brokerage says. Shares are up 4.5% at 3,603.0 pence. (joseph.hoppe@wsj.com)

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Gamma Communications Could Look to Europe for Faster Growth

0943 GMT - Gamma Communications' European operations have the potential for faster growth, despite currently being stubborn, Peel Hunt analysts James Lockyer and Damindu Jayaweera say in a research note. The communications-services provider's U.K. businesses also provide significant opportunities, perhaps even more so now that it is using its tech to build new software modules, at higher margins too, they say. Gamma did note that it isn't immune to a recession, despite communications being somewhat insulated, and its highly recurring model keeps business robust, they say. Growth, however, may slow in a recession, they add. Peel Hunt has a buy rating on the stock with a target price of 1,890 pence. Shares trade up 4.1% at 1,114.00 pence. (kyle.morris@dowjones.com)

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Vertu Motors Update Seems Cautious

0935 GMT - Vertu Motors update shows that management is cautious about the outlook given strong macro headwinds, while 70% of full-year profit is likely to come in the 1H, Liberum analysts say in a research note. The U.K. car retailer is expected to report an adjusted pretax profit of GBP24.8 million for the 1H, leaving GBP10.6 million to be achieved in the 2H, the analysts say. Despite Vertu is facing supply constraints, its margins are currently robust driven by high demand and gross profit from the increased sale of new vehicles, the analysts note. Liberum has a buy recommendation on the stock and a target price of 100 pence. Shares are up 0.5% at 47.0 pence. (michael.susin@wsj.com)

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Gamma Communications' Investment Case Set to Strengthen

0921 GMT - Gamma Communications' investment case should only become more attractive over the next year, with the company particularly performing well in the U.K., Citi analysts say in a research note. The communications services provider's robust U.K. performance has helped to support more challenging markets overseas, they say. "We are confident that the underlying growth drivers remain, including in the U.K. [Session Initiation Protocol] business, although challenges persist with critical mass in some areas and uncertainty levels have clearly risen," they point out. Citi has a buy rating on the stock with a target price of 1,800 pence. Shares trade up 3.2% at 1,104.00 pence. (kyle.morris@dowjones.com)

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Gamma Communications 1H Fails to Alleviate Growth Concerns

0907 GMT - Gamma Communications' weak product metrics undermine its growth outlook and its first-half print does nothing to assuage that view, Jefferies' Jerry Dellis and Yi Hsin Yeoh say in a research note. The communications services provider's first half shows profit growth continuing to slow and inflationary pressures being mitigated until now by price increases and cost discipline, they say. Salary inflation shouldn't materially hit 2022, but it could slow Ebitda growth for a short time after the period ends, they note. The pick-up in revenue growth for the half reflects the U.K. Direct segment recovering against a low base, they add. Shares trade up 3.4% at 1,106.00 pence. (kyle.morris@dowjones.com)

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Ashtead Set for Further Growth Boosted By North American Market

(MORE TO FOLLOW) Dow Jones Newswires

09-06-22 0804ET