Sterling Could Underperform on Prospect of Tight Fiscal Policy

Sterling Could Underperform on Prospect of Tight Fiscal Policy

0953 GMT - Sterling looks set to underperform heading into year-end, even as a fall in sterling implied volatility--an indicator of expected price swings in the currency--suggests some calm has returned to the market, ING says. A potentially tight U.K. fiscal budget on November 17 could wipe much more off the expected Bank of England interest rate-rise cycle than the European Central Bank's cycle, ING analyst Chris Turner says in a note. "And our call for a difficult, not benign external environment should see sterling soften again," he says. GBP/USD three-month implied volatility is around 12.6%, compared to the high around 19.8% in late September after the government's mini-budget sparked market turmoil, according to Refinitiv. GBP/USD falls 0.3% to 1.1510. EUR/GBP rises 0.2% to 0.8746. ([e-mail])

 
Companies News: 

Smiths Group 1Q Organic Revenue Grew 13%, Backs FY 2023 Guidance

Smiths Group PLC on Wednesday reported a 13% rise in organic revenue growth for the first quarter of the new fiscal year, and backed its full-year guidance.

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Taylor Wimpey Sees 2022 Profit Rising In Line with Market Views; 2H Sales Rate Fell

Taylor Wimpey PLC said Wednesday that it expects full-year operating profit to rise in line with market views and continues to see good levels of home-buying interest, though it has seen its second-half sales rates hit by wider economic uncertainty.

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Ashtead Group Shareholder Arab Petroleum Sells 4.8M Shares at 260P Each

Numis Securities Ltd. said Wednesday that it has placed 4.8 million ordinary shares of Ashtead Group PLC on behalf of Arab Petroleum Investments Corp. at 260 pence each, as first flagged late Tuesday.

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Purplebricks Shareholder Lecram Calls for Chairman Removal and Replacement

Purplebricks Group PLC said Wednesday that it has received a requisition notice from a shareholder calling a general meeting to remove Chairman Paul Pindar, and replace him with former Countrywide Chief Executive and Rightmove PLC founder Harry Hill.

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Flutter Entertainment Raises US Guidance After 3Q Revenue Growth

Flutter Entertainment PLC said Wednesday that it was upgrading its 2022 guidance for U.S. revenue after strong growth in the country and that group revenue for the third-quarter rose 22%.

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Marks & Spencer 1H Pretax Profit Rose; Sees Worsening Backdrop in FY 2024

Marks & Spencer Group PLC said Wednesday that pretax profit for the first half of fiscal 2023 rose despite increased costs, and that it expects fiscal 2024 market conditions to become more challenging.

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ITV Nine-Month Revenue Grew on Increased Digital Revenue, Studios Strength

ITV PLC said Wednesday that revenue for the first nine months of 2022 rose after it booked growth in digital and from ITV Studios.

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Aviva's Nine-Month General Insurance Gross Written Premiums Rose; Mulls Buybacks

Aviva PLC on Wednesday reported a rise in general insurance gross written premiums for the first nine months of the year and said it anticipates additional capital returns to shareholders.

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Watches of Switzerland 1H Revenue Rose on U.S. Robust Sales; Lifts FY 2023 Views

Watches of Switzerland Group PLC said Wednesday that performance for the first half of fiscal 2023 has been robust, driven by broad based sales growth, and raised its full-year guidance.

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Taylor Wimpey Sees 2022 Profit Rising in Line With Market Views; 2H Sales Rate Fell -- Update

Taylor Wimpey PLC said Wednesday that it expects full-year operating profit to rise in line with market views and continues to see good levels of home-buying interest, though it has seen its second-half sales rates hit by wider economic uncertainty.

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FirstGroup Swung to 1H Pretax Profit on Increased Passenger Volumes

FirstGroup PLC said Wednesday that it swung to a pretax profit for the first half of fiscal 2023 as revenue rose on the back of higher passenger volumes, and that the board's expectations for the year are broadly unchanged.

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J.D. Wetherspoon Has Seen Slowdown in Sales in Past Five Weeks

J.D. Wetherspoon PLC said Wednesday that it has experienced slower sales in the five weeks ended Nov. 6 than for the first nine weeks of the fiscal year, but remains cautiously optimistic about future prospects.

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Smiths News FY 2022 Pretax Profit Slipped on Higher Provisions; Raises Dividend

Smiths News PLC said Wednesday that pretax profit slipped in fiscal 2022 due to bad debt provisions, but raised its dividend and said it was confident heading into fiscal 2023.

 
Market Talk: 

M&S Drops as 1H Profit Falls, Tougher Year Looms

1058 GMT - Shares in Marks & Spencer shares fall 2.7% after the U.K. retailer reported lower underlying first-half profit and forecast a tougher year in 2023/24. Higher labour and energy costs, an exit from Russia and also comparison with the same period a year ago, when it received pandemic business rates relief, meant it reported a 24% decline in first-half profit before tax and adjusting items, Hargreaves Lansdown says. "Its partnership with Ocado Retail is also under pressure, with a loss of £0.7 million ticked up, as the demand for home delivery groceries wanes, at a time when capacity had increased," HL analyst Susannah Streeter writes. ([e-mail])

Marks & Spencer Retains Attractive Valuation Despite Macro Headwinds

1048 GMT - Marks & Spencer's shares fell by 38% over the last year despite having an increasingly attractive valuation in historical terms amid industry-wide pressures and a deteriorating economic outlook, head of markets at Interactive Investor Richard Hunter says in a research note. The U.K. retailer reported a positive 1H performance as it heads to a typically strong final quarter, likely to be short-term boosted by the festive period and World Cup competition, Hunter adds. However, M&S's outlook for the next year is uncertain for reasons outside its control while the current backdrop is hurting retailer share prices, Hunter notes. "The tide has not yet turned in the company's favor, with the market consensus stuck for the moment at a hold," Hunter adds. ([e-mail])

Next's Made.com Buy Shows Core Proposition is Sound

1040 GMT - Next is buying the brand, website, and IP of failed furniture retailer Made.com as it enters administration, as widely speculated, AJ Bell says. The fashion retailer's purchase shows there was nothing wrong with Made.com's proposition as such, just how business was run, AJ Bell investment director Russ Mould says in a market comment. Made.com couldn't survive in a world where there wasn't stable demand, low inflation, and a cost-efficient global supply chain, the U.K. brokerage says. "Next has the scale, experience and retail savvy to adapt to changing economic circumstances and it has done so successfully in the past, suggesting it can turn Made.com into a successful and lucrative brand," Mould says. Next shares are down 1% at 5,334.0 pence. ([e-mail])

Taylor Wimpey Looks Assured Despite Softening Market

0956 GMT - Taylor Wimpey's performance update reflects a tough market, but after yesterday's bleak statement from Persimmon, it looks a lot more confident and less alarming, Peel Hunt says. The house builder's full-year expectations are unchanged, and while there has been a drop-off in activity due to higher cancellation rates, site numbers are edging ahead rather than declining, Peel Hunt analysts say in a research note. The shares are trading on a 25% discount to total net asset value for 2022, so a lot of bad news--perhaps too many--are already baked into the share price, the brokerage says. Peel Hunt retains its buy rating and 130 pence price target on Taylor Wimpey's stock. Shares are down 0.4% at 95.62 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

11-09-22 0708ET