Sterling Could Fall as BOE Nears End of Rate-Rise Cycle

Sterling Could Fall as BOE Nears End of Rate-Rise Cycle

1152 GMT - Sterling could fall if the Bank of England raises interest rates by 25 basis points in March but signals this will be the last rise, Monex Europe says. A re-widening of U.S.-U.K. rate differentials has recently weakened sterling, which could extend further if the BOE formally recognises that March's potential rate rise will be the last and given U.S. data continues to favor a tighter rate path for the Federal Reserve, Monex analysts say in a note. "Over the medium-term, however, reduced recession risk of a deeper recession and/or financial instability due to a lower BOE terminal [peak] rate should enable GBP/USD to appreciate on a procyclical basis given our expectation that the external risk environment is set to improve." ([e-mail])

Companies News: 

Tekcapital Raises $2.7 Mln on Share Placing to Fund Portfolio Companies

Tekcapital PLC said Monday that it has raised a total of 2.25 million pounds ($2.7 million) through an oversubscribed share placing and that the funds will be used to accelerate growth of its portfolio companies.

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Proteome Sciences Sees Higher 2022 Revenue, Earnings

Proteome Sciences PLC on Monday said it expects to report higher revenue and earnings for 2022 despite higher costs and that it is strongly positioned for 2023.

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Coats Group Completes $250 Mln US Private Placement

Coats Group PLC said Monday it has completed a $250 million issue of U.S. private placement notes and that this will refinance a loan used for an acquisition.

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Keystone Law Sees FY 2023 Performance Slightly Above Market Views

Keystone Law Group PLC said Monday that performance for fiscal 2023 is expected to be marginally above market expectations driven by a continued strong demand.

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Bank of Cyprus Raises ROTE Target After Strong 2022

Bank of Cyprus Holdings PLC on Monday raised its return on tangible equity guidance for 2023 after reporting 2022 results that exceeded its targets on higher net interest income and strong net fee and commission performance.

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Bradda Head Appoints Joseph Wilkins as COO

Bradda Head Lithium Ltd. said Monday that is has appointed Joseph Wilkins as chief operating officer with immediate effect, replacing Jim Guilinger.

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Jade Road Raises Around $183,000 in Conditional Fundraise

Jade Road Investments Ltd. said that it has conditionally raised $183,427 as part of its equity fundraise entirely underwritten by Heirloom Investment Management LLC.

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Link in talks to sell fund solutions business as Woodford probe continues -- Financial News

Potential deal with UK regulator means the fund services giant may not make any profit from selling its solutions business

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Trifast to Miss FY 2023 Guidance on Customer Destocking; CEO Steps Down

Trifast PLC said Monday that it won't meet fiscal 2023 market expectations due to market uncertainty and destocking, and that Chief Executive Mark Belton has resigned.

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Upland Resources to Raise GBP1.3 Mln for Sarawak Activities

Upland Resources Ltd. said Monday that it expects to raise 1.3 million pounds ($1.6 million) in a share subscription, with the proceeds to be used toward its activities in Malaysia's Sarawak.

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Eleco Sells Eleco Software to FirstInVision for EUR600,000

Eleco PLC said Monday that it has sold its German architectural business Eleco Software to Austria's FirstInVision for 600,000 euros ($641,730).

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Wilmington 1H Pretax Profit Fell; Sees FY 2023 in Line With Views

Wilmington PLC on Monday said its half-year pretax profit fell on strong comparatives and that it expects its full-year results to be in line with expectations.

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Goldplat Resumes Share Trading After Reporting Rise in FY 2022 Net Profit

Goldplat PLC said Monday that profit for fiscal 2022 rose, helped by increased material supply and enhanced margins, and that trading in its shares has resumed.

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Hill & Smith Adds to US Presence with Enduro Acquisition

Hill & Smith PLC said Monday that it has bought U.S. engineered composite solutions company Enduro Composites Inc. for $35.0 million in cash.

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Rambler Metals Says Financial Position Uncertain After Default on Sandstorm Gold Agreement

Rambler Metals & Mining PLC said Monday that its financial position remains uncertain after defaulting on an agreement with Sandstorm Gold Ltd. and that it remained in discussions with several groups so as to restructure its finances.

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LSL Property Services Chair Bill Shannon Set to Step Down After AGM

LSL Property Services PLC said Monday that Nonexecutive Chair Bill Shannon will step down from the board after the company's next annual general meeting, expected in May.

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InterContinental Hotels Group Expected to Report Higher 2022 Pretax Profit, Revenue -- Earnings Preview

By Anthony O. Goriainoff

 
Market Talk: 

Keystone Update Looks Robust Despite Backdrop

0951 GMT - Keystone Law Group published a short, but positive update which shows a high-quality and resilient business, Shore Capital analyst Jamie Murray says in a note as shares rise 8.8%. The law firm said FY 2023 performance is ahead of market expectations which suggests that fee earner productivity must have been better than expected, despite the macroeconomic headwinds and uncertainty which likely affected its ability to recruit, Murray says. Following Keystone's update, Shore sees FY 2023 adjusted profit of GBP8.5 million and revenue of GBP55.0 million. Shore has a buy rating on the stock and a target price of 488.0 pence. ([e-mail])

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Darktrace Sends Signal of Intent With E&Y Review

0959 GMT - Darktrace's appointment of Ernest & Young to conduct an independent third-party review of financial processes and controls looks like a good move following a report released on the company by a short seller, Goodbody's Patrick O'Donnell says in a research note. "No timing is provided for completion of E&Y report but a good move from the company given the allegations made in the short report and will add an independent overview of controls which should be positively received by investors," O'Donnell says. Goodbody has a buy recommendation on the cybersecurity company. Shares trade up 1.8% at 267.50 pence. ([e-mail])

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Darktrace's Review Looks Better Late Than Never

1046 GMT - Darktrace's appointment of Ernst & Young won't quieten the bears in the short term, but assuming the independent review gives it a clean bill of health it would at least allow the firm some breathing space to re-establish credibility, AJ Bell investment director Russ Mould says in a note. "While its first response to criticisms aired by short seller Quintessential Capital Management was a boilerplate rejection, Darktrace shows it is now taking concerns over its accounting seriously by bringing in a third-party auditor to conduct a review," Mould says. Shares trade up 2.5% at 269.40 pence.([e-mail])

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Tesco's Banking Arm Disposal Makes Sense

1055 GMT - Tesco's potential plans for selling its banking arm makes sense given recent demerging trends as companies focus in their core business instead of offering a broad range of services, AJ Bell investment director Russ Mould says in a note. The grocer is likely to prioritize the improvement of its supermarket experience and delivery capabilities as it faces increasing pressures from competitors such as Aldi and Lidl, Mould notes. "Lloyds and Virgin Money might be interested in Tesco Bank and so might NatWest, which was previously the supermarket's joint-venture partner when its parent company used to go under the name of Royal Bank of Scotland," he adds. ([e-mail])

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Global Economic Sentiment Improves on Strong Labor Market

1124 GMT - Global economic sentiment is improving despite higher interest rates and inflation thanks to strong wage growth and resilient employment levels, Oxford Economics chief global economist Innes McFee and senior economist Tomas Dvorak say in a note. Recession concerns among the G-7 group have subsided, with OE's wage and employment sentiment indicators staying strong in early 2023, the economists say. Still, the indicators don't point to a significant uptick in activity, and signal stagnating consumer spending across the U.S. and Europe, OE says. "While this is good news for the health of household finances, it also suggests that inflation could be more persistent in the first half of 2023 than expected, which will keep central banks on high alert," the economic-research firm says. ([e-mail])

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UK House-Builders Rise as Data Shows Buyers Returning

1126 GMT - U.K. house-building stocks rise after industry data showed house prices stayed flat in February, though buyers are returning to the market. Average new seller asking prices remained unchanged this month, rising just GBP14, the smallest ever increase from January to February, according to the Rightmove House Price Index. Still, the market has started 2023 better than many expected, with the number of potential buyers contacting agents rising 11% in the last two weeks compared with the same period in 2019, Rightmove said. "Though it's still very early in the year, this month's key metrics suggest many buyers are seeing reasons to get on with their moves," Rightmove's Tim Bannister writes. Taylor Wimpey is the sector's biggest top-flight riser, up 1%. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

02-20-23 0713ET