Prospect of UK Fiscal Stimulus Could Boost Pound in Coming Months
0742 GMT - Data this week showing the U.K. government borrowed less than the Office for Budget Responsibility had predicted in the fiscal year to end-March opens the door to fiscal stimulus and could boost the pound later this year, MUFG analyst Derek Halpenny says in a note. The data could allow the government to announce tax cuts in the Autumn Budget that would become effective in April 2024 ahead of a general election later next year, he says. This would add weight to prospects of the BOE taking longer to cut rates than the U.S. Federal Reserve and could propel GBP/USD to 1.3000 or above, Halpenny says. Sterling rises on Wednesday, with GBP/USD up 0.4% at 1.2460 and EUR/GBP down 0.1% at 0.8848. (jessica.fleetham@wsj.com)
Companies News:
Persimmon 1Q Sales Fell After Challenging End to 2022, But Sees Improvements
Persimmon PLC said Wednesday that its private sales rate per outlet in the first quarter fell by 37% on year, after a challenging fourth quarter, though it is seeing encouraging signs of improvement.
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Smith & Nephew Posts 1Q Revenue Beat on Growth in Established Markets
Smith & Nephew PLC on Wednesday reported better-than-expected revenue growth for its first-quarter driven by the performance of its established markets and backed its guidance for 2023.
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Bunzl Backs 2023 Guidance After 1Q Revenue Rose
Bunzl PLC said Wednesday that revenue in the first quarter rose 8.4% at actual exchange rates and 1.2% at constant exchange rates, and backed its guidance for the year.
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Elementis 1Q Underlying Revenue Was Flat on Year
Elementis PLC said Wednesday that revenue was flat on an underlying basis in the first quarter of 2023 on benefits from pricing measures and improved mix broadly offsetting weaker volumes.
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GSK 1Q Profit, Sales Beat Expectations But Fell On-Year; Backs 2023 Guidance
GSK PLC on Wednesday reported net profit and sales that beat expectations but declined on-year, and backed its guidance for the full year 2023.
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Reckitt Benckiser 1Q Revenue Rose Ahead of Views; CEO to Step Down
Reckitt Benckiser Group PLC said Wednesday that its first-quarter revenue rose supported by a broad-based growth across its businesses, and said it has appointed Kris Licht as Chief Executive Officer to succeed Nicandro Durante.
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Nichols 1Q Revenue Rose On Packaged Business Performance; CFO Resigns
Nichols PLC on Wednesday said that revenue rose in the first quarter of 2023 on strong performance in its packaged business, and that its chief financial officer will leave the company by the end of the month.
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Drax Sees 2023 Earnings Meeting Market Views; To Start GBP150 Mln Share Buyback
Drax Group PLC said Wednesday that it expects to deliver full-year earnings in-line with analysts' expectations following a strong first-quarter system-support and generation performance, and announced a new 150 million pound ($186.1 million) share buyback program.
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Fresnillo Backs 2023 Guidance; 1Q Production Costs Worsened by Inflation, Currency Effects
Fresnillo PLC on Wednesday backed its 2023 production guidance and said first-quarter adjusted production costs continued to be worsened by continuing cost inflation and the revaluation of the Mexican peso against the dollar.
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Jupiter Fund Management Nonexecutive Chair Nichola Pease Steps Down
Jupiter Fund Management PLC said Wednesday that Nonexecutive Chair Nichola Pease is stepping down for personal reasons and will be replaced by David Cruickshank with immediate effect.
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Brickability Sees Rise in FY 2023 Revenue, Earnings Ahead of Market Views
Brickability Group PLC said Wednesday that it expects to report a rise in revenue for fiscal 2023 and earnings ahead of market expectations, after a resilient performance in the final quarter.
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Breedon Sees 1Q Revenue Rise as Pricing Offsets Volumes Weakness
Breedon Group PLC said Wednesday that performance in the first quarter has been positive, with revenue up 10% on year or 7% on a like-for-like basis on pricing.
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Man Group 1Q Assets Under Management Rose Slightly
Man Group PLC on Wednesday said its assets under management rose 1% over the first quarter.
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Zinc Media Group 2022 Pretax Loss Widened on Acquisition Costs; Revenue Rose 72%
Zinc Media Group PLC said Wednesday that its pretax loss widened in 2022 on acquisitions-related costs, but that revenue jumped on growth in TV and its Zinc Communicate units.
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Warpaint London 2022 Pretax Profit, Revenue Rose; Sees Record 1Q Sales
Warpaint London PLC said Wednesday that 2022 pretax profit rose as sales increased, and that performance in the first quarter continued to be strong as it achieved record sales in the period.
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Trifast Sees FY 2023 Revenue Rising, Profit Slightly Ahead of Guidance
Trifast PLC said Wednesday that fiscal 2023 organic revenue rose around 7% at constant currency, driven in particular by U.S. operations, and that it expects adjusted profit to marginally exceed prior guidance.
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Narf Industries Shares Fall on 2022 Results Delay
Shares in Narf Industries PLC fell 18% on Wednesday after the company said the publication of its 2022 results will be delayed and that it has appointed an interim chief financial officer.
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Gem Diamonds Sold Seven Diamonds in 1Q for $11.1 Mln
Gem Diamonds Ltd. said Wednesday that it sold seven diamonds in the first quarter and that this generated revenue of $11.1 million for the period ended March 31.
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Biome Technologies 1Q Revenue Rose, Backs Guidance; 2022 Loss Narrowed
Biome Technologies PLC said Wednesday that its first-quarter revenue rose significantly on year and retained full-year guidance, and its 2022 loss narrowed.
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Image Scan Holdings Swung to 1H Pretax Profit on Higher Orders
Image Scan Holdings PLC on Wednesday said it swung to a pretax profit for the first half of fiscal 2023 as it booked and delivered more contracts to customers.
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Learning Technologies 2022 Pretax Profit Tripled on Soaring Revenue
Learning Technologies Group PLC said Wednesday that pretax profit more than tripled in 2022, as revenue more than doubled benefiting from the integration of its late-2021 acquisition of GP Strategies.
Market Talk:
Persimmon's Update Reassuring, But Build-Cost Inflation Could Still Hit Margins
0742 GMT - Persimmon's business update was reassuring, with improvements in recent performance supporting expectations for 2023 volumes at the top end of previous guidance, Citi says. The house builder's first- quarter private sales rate of 0.62 came in better than Citi expectations of 0.57, analyst Ami Galla says in a research note. "The encouraging trading conditions support volumes near the top end, broadly in line with expectations, while persistent build-cost inflation may continue to impact margin assumptions and we expect 2023 consensus expectations to be modestly trimmed at the top end on the back of the margin headwinds," Galla says. The U.S. bank retains its sell rating and 1,059 pence price target on Persimmon's stock. Shares are up 3.3% at 1,276.5 pence. (joseph.hoppe@wsj.com)
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UK DMO Likely to Launch March 2045 Index-Linked Gilt Via Syndication on Wednesday
0740 GMT - The U.K. Debt Management Office is likely to issue the new 0.625% March 2045 index-linked gilt via a syndication on Wednesday, the first of seven gilt syndications in the 2023-24 fiscal year, RBC Capital Markets analysts say in a note. The size of the linker syndication is estimated at GBP3.5 billion, according to RBC, "making it one of the smallest index-linked gilt syndications historically." The linker gilts maturing in 20 years look cheap on the broader real yield curve, RBC says. "We think holding the index-linked March 2045 bond on these wider real yield flies is the most attractive way to hold it." (miriam.mukuru@wsj.com)
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Standard Chartered's 1Q Implies Better Revenue Mix
0712 GMT - Standard Chartered's first-quarter results and guides imply a better mix of revenue drivers than before, says Jefferies in a note after the Asia-focused bank posted profit ahead of consensus on lower operating expenses and credit costs, along with higher non-interest income but a miss in net interest income (NII). The NII gap is expected to be offset by better wealth revenue, say analysts Joseph Dickerson and associate Aqil Taiyeb. "Management guide to +10% YoY revenue growth v prior 8-10% suggesting confidence in the wealth business," they note. Jefferies rates the stock buy. London-listed shares of the bank trade roughly flat at market open at around 621 pence. (elena.vardon@wsj.com)
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Reckitt Benckiser's 1Q Beat, Guidance Upgrade Seen as Positive
0700 GMT - Reckitt Benckiser's first-quarter performance, guidance upgrade and the end of a prolonged search for a new CEO all look positive, RBC Capital Markets' James Edwardes Jones and Emma Letheren say in a note. The consumer-goods company delivered a healthy 1Q beat against expectations from all categories, leading overall organic-sales performance to beat company-compiled expectations by over 400bps, they say. "We highlight a particularly impressive beat from Nutrition and Health thanks to continued strong infant-nutrition sales in the U.S. and a strong cold-and-flu season," the analysts say. However, it is frustrating that it has taken so long to come up with an internal appointee for CEO who was the most probable six months ago, they add. (michael.susin@wsj.com)
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Standard Chartered's Updated Outlook Looks Mixed
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04-26-23 0406ET
