Sterling Could Rise if BOE Signals Further Rate Increases

Sterling Could Rise if BOE Signals Further Rate Increases

0701 GMT - Sterling could rise as the Bank of England is likely to raise interest rates by 25 basis points to 4.5% as expected on Thursday and potentially signal further rate increases, Ebury says. "Activity and inflation data have both surprised on the upside in the past few weeks," Ebury strategist Matthew Ryan says in a note. That opens the door for a "degree of hawkishness" in the BOE's forecasts and statement that indicates the potential for further rate rises, he says. Hence there is scope for sterling gains later in the week, he says. GBP/USD rises 0.1% to 1.2629 and EUR/GBP trades flat at 0.8688. ([e-mail])

 
Companies News: 

Harbour Energy Backs 2023 Guidance After Strong Start to Year

Harbour Energy on Wednesday reiterated its production, cost and capital expenditure guidance for 2023 following a strong start to the year.

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Compass Group Raises FY 2023 Guidance After 1H Profit Rose; Announces GBP750M Buyback

Compass Group PLC said Wednesday that it is upgrading its guidance for fiscal 2023 after first-half pretax profit rose and that it plans an up to 750 million pounds ($946.6 million) share buyback program.

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Smiths Group Appoints Steve Williams Chair; George Buckley to Retire

Smiths Group said Wednesday that Steve Williams will be appointed chair of the board and that George Buckley will retire from the board at the conclusion of the annual general meeting in November.

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Capita Says Cyberattack Could Cost It Up to GBP20 Mln

Capita PLC said Wednesday that some data was taken from less than 0.1% of its servers in a cyberattack on March 31, which it expects to incur exceptional costs of 15 million to 20 million pounds ($18.9 million-$25.2 million).

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Spirax-Sarco January-April Sales Growth in Line; Sees Double-Digit Sales Growth in 2023

Spirax-Sarco Engineering said Wednesday that organic sales growth in the four months to the end of April was in line with expectations, and that it expects double-digit sales growth in 2023.

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Polymetal 1Q Revenue Rose; Plans to Redomicile to Kazakhstan

Polymetal International PLC said Wednesday that first-quarter revenue rose despite a fall in production and that it was proposing to redomicile to the Astana International Financial Centre in Kazakhstan.

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Live Company Sells Two Underperforming Tours for GBP350,000

Live Company Group said Wednesday that it has sold two underperforming tours--Mythical Beasts and Outer Space-- for 350,000 pounds ($441,735) in staged payments.

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ASOS 1H Pretax Loss Widened on Exceptional Costs, Revenue Fell

ASOS said Wednesday that pretax loss for the first half of fiscal 2023 significantly widened after booking exceptional costs related to its right-sizing plan, and that revenue fell.

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Melrose Industries Revenue for First Four Months of 2023 Rose as Performance Beat Expectations

Melrose Industries said Wednesday that revenue for the four months ended April 30 rose as its performance was materially ahead of expectations, and issued guidance for the year.

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JD Wetherspoon 3Q Sales Rose on Year; Sees FY 2023 Profit at Top End of Views

J.D. Wetherspoon said Wednesday that sales increased on year in its third quarter and that it expects profits for the year to be toward the top of market expectations.

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Union Jack Oil's Wressle Project Surpasses $15 Mln in Revenue

Union Jack Oil said Wednesday that more than $15 million in revenue has been generated at the Wressle hydrocarbon development in Lincolnshire, England, since the restart of production in August 2021.

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Vertu Motors FY 2023 Pretax Profit Fell Despite Revenue Rise

Vertu Motors said Wednesday that pretax profit fell in fiscal 2023, despite revenue rising.

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Cenkos Says 2023 Revenue Holding Up So Far Despite Lower Market Activity

Cenkos Securities on Wednesday said its revenue for the year to date continues to track ahead of the average run rate for the second half of the previous year despite low levels of capital-markets activity.

 
Market Talk: 

ASOS Delivers Unimpressive 1H Results as Advantage Narrows

0706 GMT - ASOS's first-half results were underwhelming, with revenue coming in 5% below market expectations and forecast to remain in decline over the second half, RBC Capital Markets says. The online fashion retailer is going through an overhaul, which hopefully will ultimately drive sustainable change and improvements to performance, particularly internationally, RBC analysts say in a research note. "However, our research reveals that ASOS' competitive advantage on service has narrowed as it makes adjustments for the sake of profitability, and also as omni-channel retailers have closed the gap. This has partly reduced our confidence in the group's future growth potential," the Canadian bank says. RBC retains its sector perform rating and 950 pence price target. Shares are down 5% at 604.2 pence. ([e-mail])

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Compass Group Buyback Should Support Stock, But Better Opportunities Seen Elsewhere

0705 GMT - Compass Group delivered a strong performance for the first half, with organic growth and Ebita margins coming in ahead of consensus, RBC Capital Markets analysts Karl Green and Andrew Brooke say in a research note. The European region saw a steep change in organic growth--up 28% on year--driven by a significant increase in like-for-like volumes due to lapping the impact of the pandemic and appropriate pricing, they say, adding that growth was pretty balanced across all regions thanks to strong client retention and net new business wins. While the GBP750 million buyback should support the stock, the analysts see better opportunities elsewhere in the wider sector. RBC Capital Markets has a underperform rating on the stock with a price target of 1,625.00 pence.([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

05-10-23 0323ET