Sterling Could Fall Even if BOE Lifts Rates, Says Commerzbank

Sterling Could Fall Even if BOE Lifts Rates

1028 GMT - Sterling could come under pressure even if the Bank of England raises interest rates at its next meeting as the central bank is likely to remain cautious amid the recent turbulence in markets, Commerzbank says. The situation for sterling "remains difficult" particularly after the European Central Bank raised interest rates by 50 basis points Thursday as planned despite stress in the banking sector, Commerzbank currency analyst You-Na Park-Heger says in a note. "Even if the BOE takes a 25bp rate step next week [March 23] it is likely to still seem hesitant," she says. Sterling is likely to trend weaker against the euro in coming months, she says. EUR/GBP rises 0.1% to 0.8776. ([e-mail])

 
Companies News: 

Predator Oil & Gas to Raise GBP2 Mln via Share Placing

Predator Oil & Gas Holdings PLC on Friday said it has placed shares to raise 2 million pounds ($2.4 million) to fully fund its MOU-3 well in Morocco.

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UnitedHealth Takeover of EMIS Could Hurt UK National Health Service, Antitrust Regulator Says

The U.K. competition regulator's initial investigation into UnitedHealth Group Inc.'s 1.24 billion-pound ($1.50 billion) deal to buy EMIS Group PLC could reduce competition, leading to worse outcomes for the National Health Service and patients and taxpayers, it said Friday.

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John Wood Extends Apollo's Takeover Offer Deadline

John Wood Group PLC said Friday it has extended the deadline by which Apollo Global Management Inc. is required to make a formal offer for the company.

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Diploma PLC Raises GBP236 Mln via Equity Issues

Diploma PLC said Friday that it has raised 236 million pounds ($285.8 million) via the equity issues first announced late Thursday.

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EnQuest Delays Publication of 2022 Results

EnQuest PLC on Friday delayed the publication of its 2022 results and confirmed its guidance for 2023 is unchanged.

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Yourgene Health CFO Barry Hextall Steps Down

Yourgene Health PLC on Friday said its Chief Financial Officer Barry Hextall is stepping down from the role with immediate effect to pursue other opportunities.

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Bodycote 2022 Pretax Profit Rose on Price Increases

Bodycote PLC said Friday that pretax profit and revenue rose in 2022, as inflationary costs were offset by price increases and surcharges, and that it has recommended an increased dividend.

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Celsius Resources Requests Voluntary Share Suspension in Australia

Celsius Resources Ltd. said Friday that it has requested an immediate voluntary trading halt in its shares on the Australian Securities Exchange ahead of an announcement.

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Rolls-Royce Wins Funding for Nuclear-Powered Moon Base Research

Rolls-Royce Holdings PLC said Friday that it has secured 2.9 million pounds ($3.5 million) from the U.K. Space Agency for research into how nuclear power could support a future moon base.

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Kazatomprom 2022 Profit, Revenue Rose as Uranium Price Increased, Tenge Weakened Against Dollar

NAC Kazatomprom JSC said Friday that it met guidance in 2022, booking increased revenue and profit, as the average uranium price rose and due to the weakening of the tenge against the dollar.

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Circle Property Starts GBP46.2 Mln Capital Return

Circle Property PLC on Friday said it has started its first capital return to shareholders as it progresses in the sale of its assets in view of delisiting from London's AIM market.

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Amala Foods Terminates Deal With Terra Rara UK; Raises GBP405,000

Amala Foods PLC said Friday that it has terminated the proposed transaction with Terra Rara UK Ltd. due to administrative issues relating to some of the mining assets of Terra Rara following due diligence.

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Neometals' Vanadium Recovery JV Project Enters Funding Appraisal Stage

Neometals Ltd. said Friday that its joint-venture company Recycling Industries Scandinavia AB has passed the funding consideration stage by the European Investment Bank and has now entered a formal appraisal stage.

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Non-Standard Finance Shares Fall on Scheme of Arrangement Plans

Shares in Non-Standard Finance PLC fell on Friday after the company said it is planning a scheme of arrangement which, if successful, will provide certainty on its liability for historical redress claims and pave the way for a capital raise.

 
Market Talk: 

GSK Shares Look Cheap if Anti-Viral Drugs Boost Sales

1059 GMT - GSK shares look too cheap if the company's anti-viral drugs give it a sales boost, Deutsche Bank says, upgrading the drug company to buy from hold and its price target to 1700 pence from 1500p. Deutsche increases its sales and EBITA estimates by low- to mid-single digits in the medium term until 2027 and mid- to high-single digits beyond that, highlighting the potential of the company's HIV, respiratory syncytial virus and hepatitis B treatments. "We think GSK is too cheap if there is any semblance of sustainability through FY27/28, something we now think is probable courtesy of long-acting injectables in HIV and RSV, with potential upside from bepirovirsen in HepB," Deutsche analyst Emmanuel Papadakis says in a note. Shares rise 1.3% to 1405p. ([e-mail])

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European Exchanges Well Placed for Upside In Current Environment

1052 GMT - UBS expects a rotation in the European stock exchanges as investor confidence on banks has weakened, the brokerage says in a note. "While we expect the banks to recover some of the sharp declines experienced over the past week, we wouldn't be surprised if investors pared their allocations to them, which, we think, will benefit the exchanges, which are now trading near 5+ year low price-to-earnings multiples," analysts Michael Werner and Amit Jagadeesh say. There is a strong negative correlation between returns of banks and those of exchanges, as the latter tends to benefit from higher trading activity in volatile environments and from a positioning perspective - long and short investors will often allocate funds in one group with short positions in the other, the analysts say. ([e-mail])

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LSEG's Risk-Reward Profile is Favorable, Shares Look Cheap, UBS Says

1038 GMT - London Stock Exchange Group's risk-reward profile is favorable at current valuations, UBS says in a note as it raises its rating on the stock to buy from neutral. The stock-exchange and financial-information company's accelerating revenue-growth outlook is seen driving multiple expansion, analysts Michael Werner and Amit Jagadeesh say. "We think the improving pricing power in the T&B division will allow LSEG to upgrade its medium-term revenue growth guidance to 6-8% (from 5-7% currently)," they say. Shares are cheap at current levels, trading at the lower end of its 24-month trading range of GBP70-GBP85, the analysts say. UBS raises its target price on the stock to GBP87 from GBP85. Shares rise 1.7% at GBP74.5. ([e-mail])

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National Express's High Level of Leverage a Concern

0956 GMT - National Express's high level of leverage is a concern, Liberum analyst Gerald Khoo says in a note. On a covenant basis net debt to Ebitda leverage was at 2.8x at the end of 2022 and Liberum's forecasts show leverage remaining above the transport operator management's 1.5x to 2.0x target range until 2025. However true underlying leverage is significantly higher and would include the GBP500 million hybrid security as debt from an equity investor's perspective, Khoo says. "There are also other quasi-debt items that many equity investors would include when determining the effective leverage, and hence financial risk, associated with the group," he says. Liberum raises its rating on the stock to hold, from sell, and has a 115 pence target price. ([e-mail])

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European Bank Shares Broadly Rise; Credit Suisse Drops

0945 GMT - European banking stocks trade mostly higher after the biggest banks in the U.S. swooped in to rescue First Republic Bank by depositing $30 billion, but Credit Suisse is the main outlier with a 3.5% drop. Societe Generale's shares rise 2.8%, making the French bank one of the top gainers in the sector, while Erste Group Bank is up 2.4%. Intesa Sanpaolo and Lloyds Banking Group are both up 1.1%, and UBS Group rises 0.7%. The Stoxx Europe 600 Banks index is up 0.8%. In addition to Credit Suisse, whose shares fall after rebounding 19% Thursday from its heavy losses earlier in the week, HSBC Holdings, ING Groep and Banca Monte dei Paschi di Siena also trade lower. ([e-mail])

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Diploma Is Seen Growing Fast

0940 GMT - Diploma might see faster inorganic growth given the current macro uncertainties as it has historically done so, Citi says in a note after the U.K. supplier of specialized technical products and services announced the GBP76 million acquisition of Tennessee Industrial Electronics--which the brokerage sees as "impressive"--and a GBP235 million equity placing to fund it and other potential future transactions. "Historically, DPLM's acquisition activity picked up during times of weaker organic growth, notably during 2007 - 2009 and 2013 - 2015," analyst Avinash Mundhra says, noting the company's near-term pipeline with 36 small and midsized targets. Citi has a neutral rating on the stock. Shares rise 4% at 2,745 pence. ([e-mail])

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Approval for Consultation on BT's Broadband Pricing Offer Remains Base Case

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03-17-23 0718ET